Apr 09, 2026
Azerbaijan Introduces I-REC(E) Mechanism – A New Milestone in Renewable Energy Certification
Azerbaijan has taken a significant step towards advancing its renewable energy sector and achieving its decarbonisation targets by introducing the International Renewable Energy Certificate system – I-REC(E).
This initiative is directly aligned with the country’s long-term energy strategy and supports Azerbaijan’s transition towards a sustainable energy future. The country has set ambitious targets to reduce greenhouse gas emissions by 40% by 2050 and to increase the share of renewable energy in electricity generation to 30% by 2030. In this context, the implementation of internationally recognised, transparent, and traceable mechanisms such as I-REC not only supports decarbonisation efforts but also contributes to the digitalisation of the renewable energy network and enhances the traceability of energy flows.
The I-REC(E) system is a globally recognised mechanism designed to certify electricity generated from renewable sources. Under this system, certificates verify the renewable origin of electricity and can be freely traded in international markets. Each I-REC certificate represents 1 MWh of renewable electricity, enabling energy consumers to effectively manage their carbon footprint, particularly Scope 2 emissions.
In addition, the mechanism enables renewable energy producers to be registered on international platforms as certified green energy producers, increasing the market value and global recognition of their electricity generation.
It is important to note that the global I-REC mechanism is governed by the I-TRACK Foundation and operates through the Evident Registry. Through this platform, I-REC certificates are registered, tracked, and issued in accordance with international standards.
With the introduction of this system in Azerbaijan, local energy producers and companies can now, for the first time, apply directly to an accredited Local Registrator to both register renewable energy facilities on international pla
tforms and complete the certification process. This significantly improves accessibility, efficiency, and transparency, while also stimulating the development of the local market.
Within this framework, InvestBaku starting to operate as the first accredited Local Issuer in Azerbaijan, providing registration and issuance services for I-REC(E) certificates. The company aims to support both renewable energy producers and corporate consumers in integrating into the global green energy market.
The introduction of this mechanism is expected to enhance the value of renewable energy assets in Azerbaijan, increase investment attractiveness, and strengthen the country’s position as a regional green energy hub.
