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

Platts, part of S&P Global Commodity Insights, is proposing to establish new minimum and maximum volume thresholds for Platts International Renewable Energy Certificates (I-RECs) price assessments for India, Vietnam, Brazil, and Mexico.

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 occur in specific volume bounds for the identified countries, but generally 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.

Under the proposed methodology change, specific minimum (floor) and maximum (ceiling) thresholds would be implemented for the four jurisdictions, meaning that only bids, offers, trades and price indications whose associated volumes fall within these thresholds would be considered for Platts I-RECs assessments. However, bids, offers, trades and price indications with volumes outside the thresholds listed below may be normalized for assessment purposes.

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 by Jan. 2, 2025.

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.