What is a Green Certificate or Renewable Energy Certificate?

1 month ago 27

August 11, 2025 | 01:51 pm

PT PLN (Persero) recorded an increase in the sale of electricity based on renewable energy through the Renewable Energy Certificate (REC) service. In the first semester of 2025, the company noted that it had distributed EBD electricity amounting to 13.68 terawatt hours (TWh). This achievement marked a 14 percent growth compared to the same period last year.

PLN President Director Darmawan Prasodjo stated that this increase indicates the high enthusiasm of the industry and business actors towards clean energy. It also reinforces PLN's commitment to support the national energy transition towards net zero emission. Darmawan explained that REC is one of the strategic innovations to support the demand for green electricity for customers, especially in the industrial and corporate sectors.

"Our REC service is provided to facilitate businesses and industries in meeting market demand for environmentally friendly products. PLN is ready to serve the need for green electricity with a simple, fast, and affordable process," Darmawan said as quoted from the official statement on Saturday, August 9, 2025.

REC is one of PLN's green product innovations to facilitate customers in obtaining transparent, accountable, and internationally recognized recognition for the use of EBT. The price per REC unit, equivalent to 1,000 kilowatt hours (kWh), is only Rp 35,000.

"More and more companies, both domestic and international, entrust their green electricity supply through PLN's REC. So, we are optimistic that this green electricity service will continue to grow," said Darmawan, as quoted from Antara, August 7, 2025.

According to epa.gov, renewable energy projects are becoming increasingly popular as the risk of climate crisis rises. The demand for clean and sustainable energy sources is being met by issuing green certificates or Renewable Energy Certificates (RECs).

REC is a market-based instrument that represents a company's ownership rights over environmental, social, and other non-energy attributes of renewable power plants. The certificate will contain information about the type of renewable fuel used, the location of the energy usage facility, project name, project year model, unique certificate identification number, interrelated project utility, eligibility to obtain certification or renewable portfolio standards, and the level of emissions from renewable resources.

The issuance of these certificates serves as an indicator to distinguish and track renewable energy in the power grid. Additionally, these certificates qualify as renewable energy trade attributes and are expected to serve as a form of transparency and accountability for renewable energy.

Green certificates serve as a claim used by companies to demonstrate their environmental benefits and contributions to reducing greenhouse gas emissions. With the emission footprint recorded in a green certificate, it is believed that companies will be able to control these greenhouse gas emissions in the future.

Certificates are Tradable

Interestingly, green certificates are not provided with review and assessment from an authorized party. Market-based certificate systems provide flexibility to all consumers who claim to use renewable energy.

Companies can later buy and even sell their certificates in an open market, allowing consumers to achieve renewable energy goals and balance the carbon emissions released during the production process. Despite being tradable, green certificates have gained international recognition and have been applied in Western countries since the early 21st century.

As of now, green certificate sales in Indonesia are issued by PT PLN (Persero). In the first semester of 2025, green certificate sales have reached 13.68 TWh. With this figure, the total sales amount to Rp 47.880 trillion, with the price per REC unit, equivalent to 1,000 kWh, at only Rp 35,000.

Nandito Putra contributed to the writing of this article.

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