Tradable Renewable Energy Certificate is an electronic record that verifies the origin of energy by the registered renewable energy entity, it refers to green certificate or green tags. TREC is based on separating the various attributes of renewable resource based energy provision from physical energy carrier, electric or otherwise. It is another revenue stream for renewable energy Independent Power Producers (IPPs). Major advantage of TREC is that, apart from extra income stream, certificates can be traded worldwide and separately from the electricity grid infrastructure, which is no use of grid system charges or grid access problems.

The Department of Minerals and Energy (DME) completed a feasibility study on Tradable Renewable Energy Certificates (TRECs) in March 2007. The study is also available on the DME website.

Subsequent to that, the consultation meetings with stakeholders in all Provinces were conducted in April and May 2007. The aim of these meetings was to determine the extent to which other market participants would like to contribute towards the formation of the South African National Tradable Renewable Energy Certificate Team (SANTRECT).

In March 2008 the SANTRECT was formed by the DME with an aim to facilitate and coordinate the establishment of Issuing Body (IB) as Non-Profit Organisation (NPO) that will be responsible for registering, issuing, transfer and redeem certificate in South Africa.

The SANTRECT is in the process of developing the constitution and the IB will be registered thereafter. The SANTRECT is intending to register IB, and hence establishment of IB NPO by March 2009.

For more information contact: Silas Mulaudzi
Tel: (012) 317 8751
Fax: (012) 317 8973
E-mail: silas.mulaudzi@dme.gov.za