Annulment code change rejected by Board

27 March 2020

The current I-REC Standard Code ensures that energy attributes contained within an I-REC are held within the I-REC until the moment of redemption on behalf of a beneficiary. Given that I-RECs do not expire, some market players have requested for a voluntary removal, or annulment, which would give market participants an additional tool to remove I-RECs from the market without going through the process of redemption, meaning the attributes carried by a specific I-REC would never be able to be claimed by any end-user of electricity.

Following the secretariats discussions on this topic with both the board and external stakeholders, the board of the International REC Standard Foundation decided to reject the proposal to implement an annulment procedure. The main reason for doing so is that the board believes this code change could result in an unnecessarily complication for market players and there are potentially simpler methods to ensure a similar result in the market. The board discussed at the time that potentially an expiry requirement could be an preferred option in the future, as such, the board will continue look into these possibilities in the future.

For more information on this rejected code change please see the change proposal here

The report prepared by the secretariat here

Please contact the secretariat at secretariat@irecstandard.org if you have any questions regarding this topic.