The Implementation of Renewable Energy Certificates (RECs)in Six APEC Southeast Asia Economies
EGNRET 57
6 October 2022

APERC is preparing a report on RECs in Southeast Asia
Importance of RECs in APEC Southeast Asia economies• Increase of RECs demand from corporates wishing to meet RE-100 targets• Increase of RECs supply from renewable power plants to seek additionalsource of revenue streams• RECs are identified as policy lever to boost investment in renewableenergy to meet economies’ decarbonization targets

Purpose of this report• To describe and analyze the emerging REC markets in six APEC
economies in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore,
Thailand, and Viet Nam)
• To present the authors’ observations regarding the effectiveness andchallenges of RECs markets
Value of the report:• Provides an examination of RECs markets in the six APEC economies• Describes how RECs markets are currently implemented in detail• Examines RECs in selected APEC developed markets to learn from theirsuccess and challenges• Identifies key challenges and provides recommendations for sustainable
development of RECs markets in six APEC economies in Southeast Asia

RECs in six APECSE Asia Economies

RECs in four APEC
Advanced Markets

ExpertReviews

ExpertReviews

Conclusion &Recommendations

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Overview of RECs in six APEC economies in Southeast Asia••

On the demand side, RECs markets in APEC Southeast Asia started around 2015 and are growing exponentially➢ Market size in 2022 is expected at 15-20 million RECs (MWh)On the supply side, the registered capacity of 12.8 GW is well under 30% of total aggregated RE capacity (45.8 GW3 in 2019),
which could provide security of supply for future demand of RECs.
Total Registered RE Capacity of Six Economies,
12,833 MW1Total RECs Issued Six Economies,
29,153,598 MWh1

MWh9,000,000
8,000,000

Wind

7,000,000
6,000,000

Thermal5,000,000

2

4,000,000
3,000,000

Solar

2,000,000
1,000,000
2015

2016
Hydro

2017

2018

2019

Solar

Thermal

Wind

2020

2021

Hydro
MW
0

1000

2000

3000

4000

5000

6000

Notes: 1-Data from I-REC and APX reports, July 2022
2-Biomass and geothermal combined
3-Data from APEC Energy Demand and Supply Outlook 8th Edition
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Comparison of RECs in six APEC economies in Southeast Asia

Type of market
Cumulative registered RE
capacity, GW (total 12.8)
Cumulative number ofissued RECs, million RECs
(total 29.1)

Indonesia

Malaysia

Philippines

Singapore

Thailand

Viet Nam

Voluntary

Voluntary

Voluntary

Voluntary

Voluntary

Voluntary

1.5

2.3

1.4

0.8

3.9

2.9

4.3

4.0

6.3

1.2

6.5

6.8

RECs issuance andtracking system• I-REC (by
GCC)
• APX

• I-REC (by GCC)
• I-REC (by EGAT• I-REC (by GCC) • I-REC (by GCC)
• I-REC (by GCC)
• APX
& GCC)
• APX
• APX
• APX
• TNBX (national)• APX

Trading market• I-REC• APX• I-REC• I-REC• APX• APX• mGAT (national)• I-REC• APX• I-REC• APX• I-REC• APX

4Overview of RECs in four APEC advanced markets

EconomyTypes of RE Credit/Certificate Systems

U.S.A.

REC, Green Tag, RE Credit, Tradable Renewable Certificate (TRC)Japan

Non-Fossil Certificates (NFC), Green Electricity Certificates (GEC),
J-Credits, and REC (by I-REC)

China

Green Electricity Certificate (GEC), and REC (by I-REC)

Australia

large-scale generation certificates (LGCs), small-scale technology
certificates (STCs), and REC

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Preliminary observations regarding RECs markets in Southeast Asia economies
•
•
•
•
•

Each economy should establish a legal framework and governance body for its RECs market
A robust accounting and reconciliation system should be established to ensure integrity and to prevent
double-counting
When established in a balanced and pragmatic manner, a RECs market can encourage additional investment
in renewable energy generation capacity
The interaction of RECs transactions across six economies and the development of an ASEAN power gridneeds further study
The conflicts of interest between renewable generators with PPA and state-owned utilities need to beresolved

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Researcher TeamIn alphabetical orders:Ario JATI (Indonesia) ario.jati@aperc.or.jp
Asmayati Ab MANAN (Malaysia) asmayati.manan@aperc.or.jp
Thanan MARUKATAT (Thailand) thanan.marukatat@aperc.or.jp
Nabih MATUSSIN (Brunei Darussalam) nabih.matussin@aperc.or.jp
Quoc Huy PHUNG (Viet Nam) huy.phung@aperc.or.jp

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Thank You for Your Attention