Global demand for international renewable energy certificates (I-RECs) reached a record high in February, driven by strong demand in Brazil, while I-REC issuances were up on the month.
Global I-REC redemptions totalled 32.9TWh in February, up from 23.8TWh in January and above the previous monthly high of 26.9TWh in March last year. Global I-REC issues marginally exceeded redemptions, at 33.6TWh in February, up on the month from 26.3TWh in March and up of the year from 26.4TWh in February last year.
Redemptions in Brazil were at a record high at 9.7TWh, above the previous high of 6.3TWh in February last year. Issuances also were at a record high, at 9.9TWh of 2023 vintage I-RECs. Nearly three quarters of the 21.1TWh of 2023 vintage I-RECs issued have been redeemed, while for the 2022 vintage, 92pc have been redeemed. Argus last assessed 2023 Brazilian hydropower prices at $0.16/MWh and solar and wind at $0.19/MWh.
Elsewhere in Latin America, demand also reached a record high in Colombia and Guatemala, at 2.13TWh and 500GWh, respectively. Hydro I-RECs are on offer at about $1.20/MWh in Colombia and $0.80/MWh in Guatemala for 2023 vintage.
Malaysian I-REC demand rose to 3.5TWh, from a previous high of 2.8TWh in February last year. I-REC demand surged last year in Malaysia, with 9.1TWh redeemed, up from 1.5TWh in 2022. A total of 4.9TWh Malaysian I-RECs have been redeemed this year and only 1.5TWh issued. Malaysian solar 2023 I-RECs trade at a premium to most neighbouring markets and were last assessed by Argus at $5/MWh, while hydro I-RECs were assessed at $1.20/MWh.
Thai I-REC demand reached 0.85TWh in February, up from the previous high of 0.78TWh in December last year. Only 570GWh were issued in February. Thai I-RECs at present are priced at $1.30/MWh for hydro and $1.70/MWh for wind and solar 2023 vintage.
