State Grid Shanxi Electric Power Co based in North China's Shanxi province recently successfully issued International Renewable Energy Certificates (I-RECs) and made the first I-REC transaction in the province.

The I-REC is a certificate of environmental rights and interests that is used to record and declare the use of renewable energy power generation methods such as wind energy, photovoltaics, and hydropower by companies. One I-REC is issued when one megawatt-hour of electricity is generated and delivered to the grid from a renewable energy resource. 

After the carbon neutrality goal was proposed, world-renowned companies have purchased I-RECs to offset non-green electricity consumption emissions. 

State Grid Shanxi Electric Power Co reached a partnership with the Shuanlyuquan Hydropower Station in the city of Jincheng, exchanging 90 million kilowatt-hours of on-grid electricity from the hydropower station for 90,000 I-RECs and realizing an I-REC transaction. 

The transaction has explored the market value of hydropower projects and the establishment of a full-chain carbon asset management business model for hydropower resources, filled the province's gap in I-REC transactions, and served as a useful attempt in the development of the I-REC trading market for hydropower, photovoltaics and wind power in Shanxi.