Vietnam I-REC market sees increased issuance with RMD deadline passing

The Vietnamese International Renewable Energy Certificate (I-REC) market experienced a significant increase in issuance figures in September, coinciding with the Residual Mix Deadline (RMD) on Sept. 30. This deadline marks the cutoff for submitting I-RECs produced from July 1, 2023, to Dec. 31, 2023. The I-TRACK Foundation established these deadlines to streamline workflows for Issuers and Registrants, creating a more manageable process for all stakeholders.

According to the I-TRACK Foundation, I-REC(E) verifies end-user statements about their electricity usage. Suppose consumers use electricity without I-REC(E) or other recognized tracking tools. In that case, they receive the characteristics (such as technology type, carbon emissions and other environmental and societal benefits) of the electricity system’s residual mix.

In September, total issuance reached 1,185,097 MWh, a 5.16% increase from August. Vintage 2023 wind/solar I-RECs had the highest issuance figure, with 500,987 MWh, representing a 32.84% increase compared to August’s issuance figures. Vintage 2023 hydro I-RECs totaled 290,480 MWh, while vintage 2024 hydro I-RECs were the least issued at 167,510 MWh.

Despite the increase in issuance, sources indicate that these high figures contribute to a persistent oversupply in the Vietnamese I-REC market. “It’s an ongoing issue, and I don’t expect the market to recover [from the oversupply] any time soon,” a trader told S&P Global Commodity Insights.

Platts' assessment on Oct. 2 for current year wind/solar I-RECs was at 50 cents/MWh, while the previous year's counterpart closed at 39 cents/MWh. Assessments for hydro I-RECs for previous and current year vintages were 11 cents/MWh and 17 cents/MWh, respectively.