Katzenbar Limited

REC’s are tradable instruments allowing businesses to acquire and claim renewable energy credits.  Many companies worldwide use REC’s to meet their renewable energy targets or obligations.

In fact, many USA states require using REC’s as part of their Renewable Portfolio Standards, which call for electricity providers to include a certain amount of renewable energy in their electricity sales.

Because the electricity we receive through the utility grid says nothing of its origin or how it was generated, REC’s play an important role in accounting, tracking, and assigning ownership to renewable electricity generation and use.

REC’s can therefore help businesses demonstrate their commitment to sustainability and environmental responsibility, and by using RECs, businesses can enhance their brand image and attract investors who value sustainability (particularly in Europe and the Far East).

Explanation video 
 

Each REC certifies that a certain amount of electricity came from a renewable source like Wind, Hydro or Solar Power.

A renewable energy facility can either be an IPP (Independent Power Producer) supplying the national Grid, or a company generating renewable electricity for its own use (shopping malls, factories, farms, warehouses, mines, etc.), or a private PPA.

When a renewable energy facility generates electricity, it can be audited, and a REC can be created for each MWh of renewable energy that will be produced for the forthcoming year.

Each REC is uniquely identified and includes details about the source of the energy, location, and generation date.  Each REC conforms to international standards (iREC’s) and are authenticated through blockchain.

RECs are currently traded on 3 Exchanges worldwide, as well as sold directly to customers.

Customers buy REC’s for different reasons -

• some have Compliance reasons such as to meet Renewable Portfolio Standards - these customers tend to pay more.
• others purchase REC's voluntarily to meet corporate sustainability goals.

Also, not all REC's are created equal -

• Wind and Solar are Tier 1, and sell for a higher price,
• Biomass and Hydropower are typically Tier 2 or Tier 3.

The current selling price also varies around the world; prices currently range between US$ 15 and US$ 45 per MWh generated (October 2025 prices).

Both Carbon Credits (offsets) and REC’s represent the environmental benefits that can help mitigate greenhouse gas emissions.  

• Offsets represent 1 metric ton of Carbon emissions avoided or reduced.
• RECs represent 1 MWh renewable electricity generation.  

Offsets and RECs are fundamentally different instruments with different impacts, representing different criteria for qualification and crediting.  Whist a company can therefore issue both Carbon Credits and REC’s, they cannot issue both for the same period.

The conversion of Solar MWh to their Carbon Credit equivalent is not a simple calculation, but the comparison when done shows REC’s to be significantly more valuable.

For one client, the Accountant estimated REC’s to be nearly 50% more valuable.

Whilst we are not experts on Carbon Credits, we are told by clients that our REC process is faster than that to issue and monetise Carbon Credits – see below.

 

Engagement Process & Timings

1. The Client will be required to complete the REC’s Annexure A document and sign Katzenbar’s NDA.  Annexure A will be used to evaluate and log the Client.
2. The Client will be notified within 48 hours after receipt of these documents if we can issue and monetise REC’s for them.
3. If accepted, the Client will be asked to complete the Mandate Agreement between the Client and the Legal Firm who will audit, issue and trade the REC’s on the Client’s behalf.
4. On receipt of the completed and signed Mandate Agreement the Legal Firm will commence the Audit process.

The Client will be required to make available relevant documentation such as the PPA, site design layout, proof of generation and other relevant documents as requested by the Legal Firm.

The Audit will also include a site visit.  

The Audit normally takes 2-3 weeks to complete, depending on the site location.

• For South African sites, all costs including the Audit are covered by the Legal Firm.
• For sites in other African countries, there may be a cost to cover the site visit – this will be advised in step 2 – all other costs will be covered by the Legal Firm.

5. After the Audit and the Client has been approved, the Legal Firm will start the process of issue, trade and sale of the REC’s on behalf of the Client.

This process will take ±30-60 days, this period will allow the Legal Firm to obtain the best price for the REC’s

6. During step 5, the Client will be asked for their Bank details, so that payment can be made promptly once the REC’s are sold.

In summary, the process from application to payment should all happen within 90 days.