Neoenergia SA: By leasing the bonds, the company’s clients encourage the production of renewable energy, controlling …


In addition to this, you need to know more about it.

the Teles Pires Hydroelectric Power The plant, controlled by Neoenergia, has been registered for the issuance of Renewable Energy Certificates (I-REC). The titles can be marketed and transferred to companies which, by contracting them, directly encourage the production of clean energy, contributing to the fight against climate change. It is a widely accepted way in the global financial market to demonstrate sustainable energy practices and balance greenhouse gas (GHG) emissions. The approval was given by the Totum Institute, the entity responsible for the system in Brazil.

I-RECs are growing in Brazil and around the world, especially at a time when the market increasingly demands compliance with ESG criteria (environmental, social and governance, in English translation). From January to April 2021, the same number of certificates has already been issued as all last year.

“These titles allow the traceability of energy, guaranteeing its clean and renewable origin, and ensure reliable carbon accounting, based on global standards. Therefore, they are a solution used by companies that include stock market sustainability indices or that have emission reduction targets, for example. Thus, the customers who buy the production certificates of the Teles Pires power plant are aligned with our own objectives of supporting the decarbonisation of theeconomy, ”says Neoenergia’s superintendent of hydraulic engineering and operations, José Paulo Werberich.

The hydropower plant, located between the states of Pará and Mato Grosso, has an installed capacity of 1,820 MW and is considered one of the most efficient in the country. Each I-REC is equivalent to 1MWh of energy produced.

To deliver the certificates, the Teles Pires plant was integrated into the I-REC Platform, after an audit process carried out by the Totum Institute. Securities linked to the energy generated by the project from 2020 may be marketed. After the sale, they are “withdrawn”, that is to say transferred to the buyer, avoiding double negotiations to maintain the credibility of the negotiations.

I-RECs can be acquired as an environmental attribute of clean energy, with the aim of neutralizing carbon emissions from companies. For this, they are based on the inventory of GHG emissions from scope 2 of the Brazilian GHG Protocol program, those derived indirectly from the energy consumed. In practice, it is possible to contract certificates equivalent to this issue. This type of trading can be done by both open market clients and regulated environments.

Carbon credits

The Teles Pires plant also has a Clean Development Mechanism (CDM)project, an emissions compensation format created by the Kyoto Protocol. Thanks to this initiative, the energy produced by the company generates carbon credits, Certified Emission Reductions (CERs). In 2020, 1,473,640 tCO2e were sold for R $ 2.3 million to companies in Brazil, India and the Netherlands. These credits were issued by energy production over the period between November 2015, date of commissioning of the hydropower plant, and February 2017. The company is issuing credits for the period from February 2017 to December 2018, which total approximately 5.6 million tCO2e. .In addition to this, you will need to know more about it.

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