|Guarantee of origin of electricity from renewable energy sources|
|European Union Electricity Market Glossary|
Guarantees of origin (GOs) have conceptually been envisioned as tracking instruments serving as evidence that electricity has been produced either from:
- renewable sources (Directive on promotion of renewable energy sources - RED I and RED II Directives) or
- high efficiency cogeneration (Cogeneration Directive 2004/8/EC and later Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency).
Under the Directive 2009/28/EC of the European Parliament and of the Council on promotion of renewable energy sources (RED I) renewable energy sources denoted renewable non-fossil energy sources such as wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases, there is no change in this regard in the Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (RED II - integral part of the Package Clean Energy for the Europeans), save for small additions (“energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas”).
Pursuant to Article 3(9) of the RED I all European Union Member States were required to establish and maintain a renewable energy guarantees of origin certification scheme.
The scheme provided an increased level of transparency to customers, allowing them to choose to purchase renewable or non-renewable electricity.
Renewable energy guarantees of origin appeared firstly in the Directive 2001/77/EC (the predecessor of the RED I), which introduced a duty on all Member States to develop a reliable scheme in that regard (in practice, the detailed architecture of each Member State’s scheme may differ).
The RED I clarified the purpose of guarantees of origin as evidence of the origin of electricity generated from renewable energy sources and specified the minimum information, which each guarantee should contain.
The RED I defined the guarantee of origin (Article 2(j)) as "an electronic document which has the sole function of providing proof to a final customer that a given share or quantity of energy was produced from renewable sources as required by Article 3(6) of Directive 2003/54/EC", this definition is also upheld by Article 2(12) of the RED II (the word: “proof” has only been replaced with the word: “evidence”).
The RED I underlined inherent differences between the so-called "green certificate" (used for support schemes) and the guarantee of origin (the purpose thereof is transparency and reliability of the information).
The RED I allowed for transfers of guarantees of origin between Member States:
"Member States shall recognise guarantees of origin issued by other Member States in accordance with this Directive exclusively as proof of the elements referred to in paragraph 1 and paragraph 6(a) to (f). A Member State may refuse to recognise a guarantee of origin only when it has well-founded doubts about its accuracy, reliability or veracity. The Member State shall notify the Commission of such a refusal and its justification".
However, if the European Commission finds that a refusal to recognise a guarantee of origin is unfounded, the Commission may adopt a decision requiring the Member State in question to recognise it.
The above framework is in principle maintained by the RED II.
The RED II in Recital 53 explains that:
- guarantees of origin issued for the purpose of the said Directive have the sole function of showing to a final customer that a given share or quantity of energy was produced from renewable sources,
The new Directive underlines, as before, the need to distinguish between guarantees of origin and green certificates used for support schemes.
Member States may arrange for guarantees of origin to be issued for energy from non-renewable sources (Article 19(2) of the RED II).
Under the RED II guarantees of origin of energy from renewable sources are issued for the purposes of “demonstrating to final customers the share or quantity of energy from renewable sources in an energy supplier's energy mix and in the energy supplied to consumers under contracts marketed with reference to the consumption of energy from renewable sources”.
For these purposes guarantees of origin are valid for 12 months after the production of the relevant energy unit. All guarantees of origin that have not been cancelled expire at the latest 18 months after the production of the energy unit.
Guarantees of origin are issued, transferred and cancelled electronically.
A guarantee of origin must specify at least:
Simplified information may be specified on guarantees of origin from installations of less than 50 kW.
22 March 2019
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (RED II), Article 2(12), Article 19, Recitals 53 - 59
|Last Updated on Sunday, 06 October 2019 16:46|