Executive Summary
- Fourth Partner Energy has supplied 16,000 I-RECs to Colt Data Centres from its Atharga, Dhule Solar Parks, supporting Colt’s clean energy and Scope 2 decarbonisation goals.
- The collaboration evolved from an initial one-month procurement to a longer-term engagement, highlighting the growing role of I-RECs as a flexible renewable energy solution for data centre operations.
The Growing Role of I-RECs in Corporate Renewable Energy Strategies
As businesses across industries accelerate their decarbonisation efforts, renewable energy procurement is becoming an increasingly important part of corporate sustainability strategies. However, physical renewable energy procurement is not always feasible for every facility due to factors such as location, available space, power requirements, regulatory considerations, or commercial viability.
This is where International Renewable Energy Certificates (I-RECs) can play an important role.
What is an I-REC?
An I-REC represents the environmental attributes associated with one megawatt-hour (MWh) of clean power generated from an eligible renewable energy project. These certificates allow organisations to account for renewable energy consumption even when their operations cannot directly procure physical renewable electricity from an RE project. I-RECs are traceable, prevent double-counting when properly redeemed, and are recognised by major sustainability frameworks including CDP, RE100.
For corporates with ambitious climate commitments, this provides an additional pathway to address Scope 2 emissions and make measurable progress towards clean energy goals.
Colt's Sustainability Goals
Colt Data Centres has always prioritised sustainability and services a long-term goal of achieving net zero carbon by 2045.
Renewable energy is central to this strategy, with Colt aiming to procure 100% renewable energy across all its sites globally by 2030. The company also focuses on energy efficiency, sustainable data centre design, supply chain decarbonisation, among others.
This makes renewable energy procurement an important lever in Colt’s broader transition to net zero.
Colt and Fourth Partner Energy: From a One-Time Purchase to Long-Term Engagement
The collaboration between Colt Data Centres and Fourth Partner Energy began in 2024, when Colt approached FPEL to understand how I-RECs could support its renewable energy requirements.
At the time, Colt was paying a premium of around ₹ 0.25 per unit for green power through the distribution company. FPEL introduced I-RECs as an alternative that could support Colt’s renewable energy requirements while offering a more economical approach.
The engagement started with a one-time I-REC purchase for a month and subsequently expanded to a six-month requirement. This was recently extended by another 18 months, reflecting the growing scope of the collaboration.
In total, FPEL has supplied 16,000 I-RECs to Colt Data Centres from its Atharga, Dhule Solar Parks, with the procurement taking place in two tranches of 8,000 I-RECs each.
Management Speak
As Namrata, who manages the relationship from FPEL, explains:
“Our relationship with Colt has evolved beyond a single I-REC transaction. From understanding their initial requirement to supporting them through changing procurement needs, our focus has been on providing a solution that works for them. For corporates, renewable energy requirements can evolve with their sustainability goals and business needs, so having a partner who can adapt to these changing requirements is important. The continued engagement reflects the trust we have built over time and our ability to support Colt’s renewable energy and Scope 2 requirements as their needs evolve.”
Learn more about I-RECs and how FPEL is contributing to the growing renewable energy ecosystem:
https://fourthpartner.co/wp-content/uploads/2025/11/I-RECs-Case-Study-Final-compressed.pdf
Why I-RECs Matter for Corporates
For companies with multiple facilities, leased premises, space constraints, or limited feasibility for physical renewable energy procurement, I-RECs can offer several advantages.
Flexibility: Organisations can procure I-RECs without needing to install renewable energy systems at their own facilities.
Scope 2 accounting: I-RECs can support market-based Scope 2 accounting and RE claims when used in accordance with applicable reporting requirements.
Scalability: Companies can scale procurement based on their RE requirements.
Traceability: I-RECs issued provide information about the renewable energy project, supporting transparency and credibility.
Global applicability: Their internationally recognised structure makes I-RECs particularly relevant for companies operating across multiple markets.
Client Speak:
Nikhil Parate, Head – Energy & Sustainability, Colt Data Centre, says:
“The I-RECs provided by Fourth Partner Energy give us greater confidence through detailed product information and comprehensive QR code verification. The QR code enables users to locate the renewable energy asset on a map and view details of the energy generated. Further, these I-RECs qualify for CDP submissions, making them ideal for companies like ours.”
FPEL's I-REC Offering: More Than Just Certificates
Fourth Partner Energy entered the I-RECs market in 2020, responding to the growing need among corporates for credible renewable energy solutions that complement their decarbonisation strategies. Since then, FPEL has built a growing I-REC clientele that includes leading organisations such as Meta, Colt, and Mondelez, among others.
I-RECs form an important part of FPEL’s broader renewable energy portfolio, enabling businesses to address clean energy requirements where physical renewable energy procurement may not always be feasible.
What differentiates FPEL’s offering is its connection to the company’s renewable energy generation portfolio. I-RECs are sourced from credible FPEL’s renewable energy assets, giving customers greater visibility into the projects behind the certificates and supporting a more transparent procurement experience.
With I-RECs alongside solutions such as On-Site solar and Open Access, FPEL enables businesses to choose the right renewable energy pathway based on their individual energy requirements and decarbonisation goals.
Conclusion
The Colt Data Centres and Fourth Partner Energy collaboration demonstrates how I-RECs can complement physical renewable energy procurement and provide corporates with a practical pathway towards their renewable energy and Scope 2 goals.
With 16,000 I-RECs supplied from FPEL’s Atharga, Dhule Solar Parks, the engagement has grown from an initial one-month requirement into a longer-term collaboration.
As more businesses look for credible, flexible, and scalable ways to accelerate their renewable energy transition, I-RECs are becoming an increasingly relevant part of the corporate energy toolkit.
FAQs
1. What are I-RECs?
I-RECs are internationally recognised certificates that represent the environmental attributes of one MWh of renewable electricity generation.
2. How can I-RECs help companies address Scope 2 emissions?
I-RECs can support market-based Scope 2 accounting by enabling organisations to claim renewable energy consumption in line with applicable reporting standards.
3. Can companies use I-RECs if they cannot install solar at their facilities?
Yes. I-RECs offer flexibility for organisations where on-site or off-site (open access) physical renewable energy procurement is not feasible.
4. How does FPEL supply I-RECs?
FPEL supplies I-RECs generated from its renewable energy portfolio, providing corporates with traceable environmental attributes from identifiable renewable energy assets.
Looking to strengthen your renewable electricity strategy with I-RECs? Partner with Fourth Partner Energy to explore credible and scalable environmental attribute solutions for your business.
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