Platts to implement new volume thresholds for I-RECs assessments in India, Vietnam, Brazil and Mexico

Platts, part of S&P Global Commodity Insights, will establish new minimum and maximum volume thresholds for Platts International Renewable Energy Certificates (I-RECs) assessments for India, Vietnam, Brazil and Mexico, effective Jan. 31, 2025.

This follows a proposal published on Dec. 4.

Currently, all Platts I-RECs assessments consider trades, bids, offers, and price indications of minimum 1 GWh in volume. Platts has observed that most of the reported price information by market participants occurs in specific volume bounds for the identified countries above 1 GWh. Moreover, it has been observed that volume is a relevant parameter triggering price differentials in I-REC negotiations, with the level of sensitivity to volume fluctuating across geographies.

The new thresholds for India, Vietnam, Brazil and Mexico would add further granularity to Platts I-RECs assessments, to better reflect market fundamentals and price dynamics of each region.

Effective Jan. 31, 2025, specific minimum (floor) and maximum (ceiling) thresholds will be implemented for the four jurisdictions, meaning that only bids, offers and price indications whose associated volumes fall within these thresholds will be considered for Platts I-RECs assessments.

The original proposed minimum volume for Brazil was lowered from 50 GWh to 30 GWh following feedback from the market.

Assessments affected by this change are as follows:

India

Vietnam

Brazil

Mexico

Please send all comments, feedback, and questions to global_renewables@spglobal.com and pricegroup@spglobal.com .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.