Głowacki Law Firm

Guarantee of origin of electricity from renewable energy sources
European Union Electricity Market Glossary

 

 

 

Guarantees of Origin (GO) have conceptually been envisioned as tracking instruments serving as evidence that electricity has been produced either from:

 

- renewable sources (Directive 2009/28/EC on promotion of renewable energy sources - RES Directive) 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, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC).

 

Under the RES Directive „renewable energy sources‟ denote renewable non-fossil energy sources such as wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases.

 

Pursuant to Article 3(9) of the RES Directive all European Union Member States are required to establish and maintain a Renewable Energy Guarantees of Origin certification scheme.

 

The scheme provides an increased level of transparency to customers, allowing them to choose to purchase renewable or non-renewable electricity.

 

Renewable Energy Guarantees of Origin appeared in the Directive 2001/77/E, 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 RES Directive 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 RES Directive defines 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".

 

The RES Directive underlines 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 RES Directive allows 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 Directive of European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast - part of the Package Clean Energy for the Europeans).

 

The said Directive in Recital 53 confirms 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,


- a Guarantee of Origin can be transferred, independently of the energy to which it relates, from one holder to another,


- with a view to ensuring that a unit of renewable energy is disclosed to a customer only once, double counting and double disclosure of Guarantees of Origin should be avoided,


- energy from renewable sources in relation to which the accompanying Guarantee of Origin has been sold separately by the producer should not be disclosed or sold to the final customer as energy from renewable sources.

 

The new Directive underlines, as before, the need to distinguish between Guarantees of Origin and green certificates used for support schemes.

 

 

 

Directive of European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast), Recitals 53 - 58

 

(53) Guarantees of origin issued for the purpose of this Directive have the sole function of showing to a final customer that a given share or quantity of energy was produced from renewable sources. A guarantee of origin can be transferred, independently of the energy to which it relates, from one holder to another. However, with a view to ensuring that a unit of renewable energy is disclosed to a customer only once, double counting and double disclosure of guarantees of origin should be avoided. Energy from renewable sources in relation to which the accompanying guarantee of origin has been sold separately by the producer should not be disclosed or sold to the final customer as energy from renewable sources. It is important to distinguish between green certificates used for support schemes and guarantees of origin.

 

(54) It is appropriate to allow the consumer market for electricity from renewable energy sources to contribute to the development of energy from renewable sources. Member States should therefore require electricity suppliers who disclose their energy mix to final customers in accordance with Article X of Directive [Market Design], or who market energy to consumers with a reference to the consumption of energy from renewable sources, to use guarantees of origin from installations producing energy from renewable sources.


(55) It is important to provide information on how the supported electricity is allocated to final customers . In order to improve the quality of that information to consumers, Member States should ensure that guarantees of origin are issued for all units of renewable energy produced, except for when they decide not to issue guarantees of origin to producers who also receive financial support. If Member States decide to issue guarantees of origin in such a case, or they decide not to issue them directly to producers, they shall be able to choose by which means and mechanisms to take into account their market value. When renewable energy producers also receive financial support, the market value of the guarantees of origin for the same production shall be appropriately taken into account in the relevant support scheme.


(56) Directive 2012/27/EU provides for guarantees of origin for proving the origin of electricity produced from high-efficiency cogeneration plants. However, no use is specified for such guarantees of origin , so their use may also be enabled when disclosing the use of energy from high efficiency CHP.

 

(57) Guarantees of origin, which are currently in place for renewable electricity, should be extended to cover renewable gas. Extending the guarantees of origin system to non-renewable energy sources should be an option for Member States. This would provide a consistent means of proving to final customers the origin of renewable gases such as biomethane and would facilitate greater cross-border trade in such gases. It would also enable the creation of guarantees of origin for other renewable gases such as hydrogen.


(58) There is a need to support the integration of energy from renewable sources into the transmission and distribution grid and the use of energy storage systems for integrated variable production of energy from renewable sources, in particular as regards the rules regulating dispatch and access to the grid. Directive [Electricity Market Design] lays down the framework for the integration of electricity from renewable energy sources. However, this framework does not include provisions on the integration of gas from renewable energy sources into the gas grid. It is therefore necessary to keep them in this Directive.

 

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

Directive 2009/28/EC of the European Parliament and of the Council on promotion of renewable energy sources (RES Directive), Article 2(j), Article 3(9)

 

Directive of European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast), Recitals 53 - 58

 

RED II: Auctioning GOs for supported energy brings wider system benefits and ensures alignment with EU State Aid rules 

 

 

 

 

clip2

    Links    

 

 

 

 

 

 

 

Last Updated on Monday, 10 December 2018 12:37
 

Search

TwitterFacebookLinkedin
Copyright © 2009 - 2019 Michal Glowacki. All rights reserved.
The materials contained on this website are for general information purposes only and are subject to the disclaimer