Brazil I-REC issuances reach record on market growth

Brazilian International Renewable Energy Certificates issuances have reached a record high of 69.7 million megawatt-hour January through August, already surpassing the total issued in the entire previous year, according to the latest data from the I-TRACK Foundation.

The figure indicates that the Brazilian I-REC market continues to grow steadily and is likely to reach a two-digit growth in 2026. In the first eight months of the year, issuances were 7.7% higher than the 64.7 million MWh issued in 2025, and by 23.5% from the corresponding January-August period.

"The market is evolving, from simply stating renewable energy consumption towards proven claims," Isabel Arantes, strategic consultant at Instituto Totum, the Brazilian I-REC issuing body, told Platts Sept. 22. "Today, it is not enough to simply claim to consume renewable energy; it is necessary to demonstrate it through a structured, evidence-based process,"

Platts is part of S&P Global Energy.

Issuances of hydroelectric I-RECs reached 35.2 million MWh in the period, compared with 35.7 million MWh for all of 2025.

Hydropower represents most of the electricity generated in Brazil, having reached 51.2% of the total electricity supply in 2025, according to figures from the country's Ministry of Energy and Mines. But other renewable sources have expanded in recent years, reflected in an increase in I-REC issuances.

In January-August, solar I-REC issuances reached 7.2 million certificates, up by 32.3% from 2025's total. Wind issuances reached 26.3 million MWh in the year-to-August, up by 18.6% from 2025.

Solar power represented 11.3% of the Brazilian electricity supply in 2025, compared with 9.3% in the previous year, while wind increased to 14.9%, from 14.1%.

The higher supply of hydro I-RECs, combined with consumers' preference for newer technologies, has been causing a discount for hydro I-RECs relative to other sources, according to market participants. Platts' assessment of vintage 2026 hydro I-REC was at 0.85 real/MWh (17 cents/MWh) on Sept. 21, compared with 0.95 real/MWh for wind and solar.

Brazilian I-REC redemptions showed a similar trajectory, though they remained lower than issuances, potentially indicating oversupply, according to sources. Redemptions totaled 65.8 million MWh in January-August, up 8.6% from the 60.6 million MWh retired in all of 2025, the I-TRACK Foundation data shows.