The Renewable Energy Certificate Brazil (REC Brazil) is a renewable energy certification system established by the National Electric Energy Agency (ANEEL) in Brazil. This system allows Brazilian consumers to have the option of purchasing energy from renewable sources, such as wind, solar, biomass and hydroelectric power, even if they do not have physical access to the electrical grid from such sources. ANEEL is the regulatory agency responsible for the electricity sector on Brazilian soil and created REC Brazil to encourage the production and consumption of renewable energy, helping to diversify the country's energy matrix and reduce greenhouse gas emissions.
ANEEL establishes the rules and criteria for the generation of renewable energy eligible for REC Brazil, such as:
– The minimum amount of renewable energy that must be generated for a plant to be eligible to receive renewable energy certificates (REC) under the REC Brazil system. This minimum amount is established according to the size and technology of the plant, as well as the renewable sources used in energy generation. For example, for wind power plants, ANEEL establishes that the plant must generate at least 1 average MW of energy per year to be eligible for the REC Brazil system. As for solar plants, the minimum amount is 500 kWh per month of operation.
– Renewable energy sources that are eligible for REC Brazil include hydroelectric, wind and solar energy, as well as biomass, biogas and solid urban waste. Each renewable energy source has its own rules and specific criteria to be met for the generated energy to be considered eligible for REC Brazil. ANEEL also conducts regular assessments to ensure that the renewable energy sources included in the system comply with established criteria.
– The location of the renewable energy generating plant is also one of the criteria for the energy produced to be eligible for REC Brazil. The plant's location can affect the efficiency of transmitting the energy generated to the areas that most need it, as well as the environmental and social impacts of generating renewable energy. Therefore, ANEEL defines specific criteria for the location of these plants, considering technical, environmental and social viability. The location of the plant is also important for defining the price of the REC, as the distance between the generating plant and the final consumer can influence the cost of transmission and distribution of energy.
– Compliance with environmental requirements that include measures to minimize environmental impacts during the construction and operation of the plant, such as the preservation of biodiversity, the sustainable use of natural resources and the reduction of greenhouse gas emissions, carrying out regular assessments to ensure that renewable energy generating plants comply with established environmental requirements. Compliance with these requirements is important to ensure that renewable energy generation is truly sustainable and has positive impacts on the environment and society.
When all these criteria are met, ANEEL issues renewable energy certificates (REC) for each megawatt-hour (MWh) of electricity generated from renewable sources, which are then traded over-the-counter by buyers and sellers, allowing consumers to acquire and use clean, renewable energy more efficiently. ANEEL monitors the REC market and the transactions carried out, to ensure that the rules are followed and that the environmental and economic benefits of REC Brazil are achieved.
In order for a company to apply for the REC, it must be registered with the CCEE (Câmara de Comercialização de Energia Elétrica) as a generating agent and have its REC Brazil eligible renewable energy plant registered with ANEEL. Then, the company must negotiate the purchase of RECs in the free energy market, which is carried out through the CCEE electronic platform.
It is important to highlight that the purchase of RECs is a way of proving the acquisition of renewable energy, but it does not mean that the company is exclusively using renewable energy in its operations. For this, it is necessary for the company to adopt measures to reduce its energy consumption and increase the use of renewable sources in its energy matrix.
The Advantage of REC Brazil Certification
One of the main advantages of a company having the REC certificate is proof of its commitment to sustainability and the environment. The certificate can be used as a marketing tool and a competitive advantage in the market, as more and more consumers value companies that adopt sustainable practices in their operations.
Another advantage is the possibility of reducing energy costs in the long term. This is because renewable energy generation can be cheaper than energy from non-renewable sources, and the acquisition of RECs can be used to prove the acquisition of clean and renewable energy to reduce the cost of the electricity bill.
The acquisition of RECs also helps the company meet sustainability and social responsibility goals, in addition to being an efficient way to neutralize greenhouse gas emissions resulting from its operations.
A real example of a company that adopted the REC is the multinational Google. In 2017, the company announced that it had achieved the goal of running 100% of its global operations on renewable energy. To achieve this goal, Google has invested in renewable energy projects around the world and purchased large amounts of REC to offset the electricity consumed by its data centers and offices.
In addition to demonstrating its commitment to environmental sustainability, Google has realized significant economic benefits from adopting REC. The company recently reported that it saved over US$ 3.5 million in electrical energy costs due to its renewable energy investments and REC purchase. Furthermore, the adoption of REC has helped to improve the company's reputation among its customers, employees and investors.
Adopting REC can be a smart strategy for companies that want to demonstrate their commitment to environmental sustainability, reduce greenhouse gas emissions, improve energy efficiency and enhance their reputation. In addition, it can help reduce long-term energy costs and meet regulatory requirements for greenhouse gas emissions.
REC Brazil is Strategic for NDC Goals
REC Brazil contributes to the Nationally Determined Contribution (NDC) targets, which are part of the Paris Agreement, by encouraging renewable energy generation in the country and helping to reduce greenhouse gas emissions. Brazil's commitment in the NDC targets is to reduce greenhouse gas emissions by 37% below 2005 levels by 2025, with an additional contribution of emission reductions of up to 43% by 2030.
To achieve these goals, it is necessary to invest in clean and renewable energies, and REC Brazil is a way to encourage this investment, through the sale of certificates that prove the generation of renewable electricity.
REC Brazil is an important tool for companies that wish to make a commitment to sustainability and the reduction of greenhouse gas emissions, contributing to the fulfillment of the NDC goals established by Brazil in the Paris Agreement. By acquiring renewable energy certificates, companies can demonstrate their commitment to clean energy generation and encourage the energy transition in the country, increasing demand for renewable energy and stimulating investments in new plants. With this, it is possible to promote the reduction of dependence on non-renewable sources and contribute to a more sustainable future with less environmental impact.
