Understanding Green Certificates and Renewable Energy Certificates

Renewable energy is gaining momentum globally as companies and industries shift towards cleaner energy sources to combat the escalating climate crisis. In Indonesia, PT PLN (Persero) has seen a significant uptick in the sale of electricity generated from renewable sources through the Renewable Energy Certificate (REC) service. In the first half of 2025, the company reported distributing 13.68 terawatt hours (TWh) of EBT electricity, marking a 14% increase from the previous year.

The surge in REC sales highlights the growing interest among industry players in adopting clean energy solutions, demonstrating a positive trend towards sustainability within the business sector. PLN’s REC service aims to meet the rising demand for environmentally friendly electricity, particularly among industrial and corporate consumers, as part of the national energy transition towards net zero emissions.

REC serves as a strategic tool to provide customers with transparent and accountable proof of their utilization of renewable energy. Priced at Rp 35,000 per unit, equivalent to 1,000 kilowatt hours (kWh), the REC system offered by PLN ensures a simple, fast, and cost-effective process for businesses to access green electricity. The ease of acquiring these certificates has encouraged both domestic and international companies to source their green energy needs through PLN’s REC service, fostering optimism for its continued growth.

Green certificates, also known as Renewable Energy Certificates (RECs), are market-based instruments that signify a company’s ownership of the environmental and social attributes of renewable energy generation. These certificates contain detailed information about the renewable fuel type used, location of the energy facility, unique identification numbers, and other relevant data to ensure transparency and accountability in renewable energy usage.

In Indonesia, green certificate sales are currently monopolized by PT PLN (Persero), with sales figures reaching 13.68 TWh in the first half of 2025, generating revenues of Rp 47.880 trillion. Despite their tradability, green certificates have gained international recognition and have been widely adopted in Western countries since the early 2000s, serving as a crucial tool for companies to showcase their environmental contributions and emission reduction efforts.

The issuance of green certificates not only aids in distinguishing and tracking renewable energy sources in the power grid but also enables companies to trade these certificates in an open market. By participating in such trading, businesses can align with renewable energy goals and offset carbon emissions associated with their operations, thereby promoting a cleaner and more sustainable energy landscape. With their potential to control greenhouse gas emissions and bolster environmental credentials, green certificates play a pivotal role in advancing the global transition towards greener energy alternatives.

Key Takeaways:
– Renewable Energy Certificates (RECs) like PLN’s REC service facilitate the adoption of clean energy solutions among businesses and industries.
– Green certificates provide transparent and accountable proof of companies’ renewable energy usage and environmental contributions.
– Green certificates are tradable instruments that help companies achieve renewable energy goals and reduce carbon emissions.
– The growing popularity of green certificates signifies a positive shift towards sustainability and cleaner energy sources in the global market.

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