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Renewable Energy Certificate

A Renewable Energy Certificate (REC) is a tradable instrument that represents the environmental benefits associated with generating 1MWh of electricity from renewable energy sources. ​

RECs are an auditable way to track and verify the use of every MWh of renewable energy. Each REC represents a unique MWh of renewable energy generated and can be traded independently from the underlying energy.

Entities can redeem RECs in order to claim the usage of the corresponding MWh of green energy and its associated environmental attributes. ​

REC mechanism

For Green Consumers

Jentayu Sustainables Berhad as a pathway to attaining climate and/or renewable energy objectives for organizations.

For Plant Owners

Jentayu Sustainables Berhad can generate an additional revenue stream for plant owners, without incurring any cost.

Benefits of RECs

Buyers' benefits

  • Wide Range of RECs: Jentayu Sustainables Berhad can procure RECs from multiple different RE sources based on consumer preference​.
  • Significant Volumes: Jentayu Sustainables Berhad can supply high volumes of RECs to cater to client consumption and level of RE ambitions​.
  • Multi-Year Supply: Jentayu Sustainables Berhad can negotiate supply of RECs for future consumption​.
  • Competitive Pricing: Jentayu Sustainables Berhad can offer comparisons to market rates to ensure pricing is competitive.

Sellers' benefits

  • Zero Costs: Jentayu Sustainables Berhad absorbs all costs associated with registration, issuance, and trading of RECs​.
  • Transparent Pricing: Jentayu Sustainables Berhad to share all transaction prices with plant owners as good governance​.
  • Flexibility: Jentayu Sustainables Berhad can offer different agreements based on plant owner preference including guaranteed pricing​.
  • Strong Buyer Network: Jentayu Sustainables Berhad can leverage extensive, international panel of buyers for RECs from JSB-owned plants and other plant owners.

Frequently Asked Questions

Buyers' FAQ

  • Achieve climate and/or environmental goals by reducing Scope 2 Greenhouse Gas (GHG) emissions and thus carbon footprint.
  • Have auditable proof of use of up to 100% renewable energy.
  • The quantity of RECs required is determined by the total energy usage and the desired proportion of energy to be classified as green.
  • By engaging with Jentayu Sustainables Berhad, you can enjoy significant savings on brokerage fees and margins typically imposed by third parties. JSB’s ownership of renewable energy plants in Malaysia, coupled with a reliable supply base of Renewable Energy Certificates (RECs), ensures a cost-effective and seamless transaction process.
  • Jentayu Sustainables Berhad, being a private entity operating on a willing buyer and willing seller basis, is unable to offer ICPT surcharge exemptions or the government-controlled initiative similar to TNB’s Green Energy Tariff (GET).

Sellers' FAQ

  • Additional profit for plant owners at no cost
  • The sales price of the RECs is negotiated on a willing buyer-willing seller basis, and is influenced by four key: the issuer, the year of production, the location, and the technology involved.
  • The revenue generated from RECs depends on the final sales price, but majority goes to the plant owners, with Jentayu Sustainables Berhad receiving a commission or an outright payment depending on the terms of the arrangement.
  • Plant Owners may be eligible to receive a minimum amount as specified in the agreement, in case Jentayu Sustainables Berhad is unable to sell the RECs.
  • International entities are allowed to purchase RECs; however, the redemption of RECs necessitates the corresponding utilization of electricity to be within Malaysia to prevent any allegations of greenwashing.