Energy saving certificates are tradable securities that include the issuer's commitment to deliver a certain amount of a specific energy carrier to the holders of the certificate on the specified date and from the place of realized savings or the commitment to save energy in a certain period of time.

Types of Energy Saving Certificate

Energy saving certificate can be used in two ways:

1- Cash energy saving certificate: in this case, the certificate shows the right to receive a certain amount of energy carrier and can be conceded to others.
2- Finance energy saving certificate: the issuer's commitment to deliver a certain amount of energy carrier is at maturity. After issuing the bonds, the issuer purchases the collected funds through a contract with the companies applying for energy saving plans, the equipment and services needed for the saving plan. In case of fulfillment of the prediction, the benefit created belongs to the issuer, and in case of non-fulfillment, the issuer can compensate for his loss from the obtained guarantee.

Cash Settlement of Bonds

In the first and second type of energy saving bonds, the issuer can compromise with the holders and settle the bonds in cash instead of delivering the energy carrier.