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Sembcorp launch REC Trading platform

Sembcorp Industries, a Singapore-based renewable energy company, has launched a renewable energy certificate (REC) trading platform that manages RECs from multiple sources.

RECs are tradable renewable assets that can be sold or traded, and the owner of the REC can claim to have purchased renewable energy. RECs are an excellent way to meet renewable energy targets, and it offers an authentic and credible way to make sure that the power comes from renewable sources. With each MW of green energy, one REC is produced, and it is uniquely numbered and tracked.

Backed by the growth of the renewable sector in China and Southeast Asia, the Sembcorp platform allows customers to trade REC100 recognized RECs to meet their green energy requirements. The news was made public by the company in a press release.

The Sembcorp’s REC platform combines RECs from different sources with those generated from Sembcorp, which is helpful for companies looking to purchase large volumes of RECs to offset their carbon footprint.

The sellers are free to sell their RECs, as long as they fulfill the criteria of the Sembcorp REC platform. The buyers are also assured of purchasing RECs that are traceable and authenticated. The company is a renewable energy generator, so it can offer a stable supply of RECs and at the same time maintain high liquidity of RECs on the platform.

The platform uses blockchain technology which ensures the authenticity and transparency of each transaction on the platform which is validated by third-party validators. The platform also offers real-time tracking, which monitors every transaction from generation and registration, to transfer and eventual retirement.

Commenting on this latest offering, Lim Yeow Keong, senior vice president, Singapore, and Southeast Asia, said, “Our aggregator platform enables customers to consolidate and manage their portfolio of RECs from different registries and geographies. Customers can choose to allocate their RECs towards a designated facility in their international footprint by making specific allocations through the platform, allowing for more flexibility in their decarbonization plans.”

One of the country’s known financial institutions, UBS and regional property dealer CapitaLand have already signed up as participants on the Sembcorp’s REC platform. Speaking on Sembcorp’s REC platform, August Hatecke, country head, UBS Singapore, said, “We are glad to be Sembcorp’s first renewable energy partner in the financial services industry as announced last year. Today, we are delighted to be on board with Sembcorp’s REC platform because we are assured of the liquidity and authenticity of RECs on their platform.”

One of the differentiating factors of Sembcorp’s REC aggregator platform is that it has been developed for businesses as well as individual consumers. The individual consumers can directly install smart meters and link up to the platform to generate RECs directly. This way, it helps all to monetize their RECs with ease and without any trouble.

For customers with sustainability targets, Sembcorp is a one-stop-shop that can combine traditional power with green power through physical assets and RECs, thus balancing the energy and sustainability requirements of each customer.

The Sembcorp REC aggregator platform offers several solutions that include electricity retailing, solar energy generation, green energy attribute management, and distributed gas retailing. It also includes distributed wastewater treatment, solid waste management and logistics, recyclables collection, and conversion of waste into energy.

In 2019, Singapore-based SP Group, one of the leading names in the energy utility business, announced that it became the first authorized local issuer of International Renewable Energy Certificates (I-RECs) in the Asia Pacific region. Companies can buy or sell green I-RECs on SP Group’s digital REC trading platform. This independent accreditation by the International REC Standard Foundation authenticates the transactions and assures the consumer of the credibility of each REC transaction.

Last year, SP Group also launched the world’s first blockchain-based renewable energy certificate marketplaces at the ASEAN Energy Business Forum (AEBF). Blockchain technology helps to enhance the security, integrity, and traceability of each REC transaction.  City Developments Limited (CDL) and DBS Bank (DBS) were the first purchasers of RECs through the platform.

In India, RECs are currently traded on two power exchanges, Indian Energy Exchange (IEX) and Power Exchange India Ltd. (PXIL). Currently, RECs are traded once in a month.

Meanwhile, Sembcorp recently announced that it would acquire the remaining 5.95% stake in its Indian arm, Sembcorp Energy Ltd. (SEIL) for ₹4,060 million ($56.9 million). The company had entered into a non-binding term sheet with its local Indian partner, Gayatri Energy Ventures Pte Ltd (GEVPL), a wholly-owned subsidiary of Gayatri Projects Limited (GPL), to acquire the remaining 5.95% stake in SEIL.

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