Enel Green Power Panamá, a renewable energy subsidiary of Enel Group, has signed an agreement for the sale of International Renewable Energy Certificates (I-RECs) with First Climate, a German-based marketer and consultant with extensive experience in the renewable energy certificate markets. The negotiation resulted from a request from First Climate to purchase IRECs from a photovoltaic plant. This would be the first transaction to sell IRECs to a counterparty, other than a Large Client, by an energy supply company in Panama.
I-RECs are an instrument that guarantees that the energy supplied to the final consumer comes from renewable sources and are recognized by the main global sustainability indices as a tool that helps meet national and international renewable energy goals. Each IREC represents proof that 1 MWh of renewable energy has been produced and includes the environmental benefits that this energy has generated.
“Switching to renewables is vital for the global transition to a low or zero carbon economy. It is essential that companies take bold climate action and align their energy procurement strategies with the sustainability goals set forth by initiatives such as RE 100 or CDP. We are excited about the possibility to help our clients source renewable energy in Panama thanks to our partnership with Enel”
-Paola del Rio Villegas, Sourcing and Business Development Manager Latin America at First Climate
The emission of IREC certificates through its photovoltaic plants and the Fortuna Hydroelectric Plant is part of Enel Green Power Panama´s variety of products. They represent an important added value for Large Clients, as it has been the case of Nestlé Panama, Manzanillo International Terminal and 3M. Enel Green Power Panama is committed to certifying, year after year, that these customers' consumption comes from renewable energy sources. This represents a total value of $ 1.8 million for the duration of these contracts. For this reason, IRECs have been a crucial point in negotiating a contract with the Smithsonian Tropical Research Institution (STRI) and other clients.
“As the largest renewable energy operator in the country, the sale of IREC certificates represents an added value for our clients since it allows them to value their efforts in terms of Sustainability, related to the consumption of renewable energy. We could say that the value of the energy that our clients acquire from us doubles with the purchase of these certificates. At Enel Green Power Panama, we are pleased to provide our clients with one more tool to raise their sustainability indexes.”
-Percy Garrido, Head of Energy Management Central America
It should be noted that EGPP was the pioneer of the IREC Standard in Panama, obtaining authorization from the local authorities for its operation in November 2019. After this, Enel incorporates the first two plants in the country certified to the I-REC Standard to issue them: Fortuna hydroelectric plant and PV plant Estrella Solar.