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Contents Business Edition nr 16, December 21, 2005

Renewable heating and cooling Directive in 2006

Commission postpones harmonisation steps until 2007

New dialogue on post-2012 climate policy targets

Extra money for support renewable energy in Ireland

Parliament approves energy efficiency and services Directive

State support renewables in Austria restricted

UK reviews energy policy

Disclosure and double counting

Agenda

Advertorial (Contents under responsibility of RECS International)

Disclosure and double counting


At present, all EU electricity suppliers are obliged to fully disclose information about the fuel mix of electricity (renewables, fossil and nuclear) they supply to their costumers (end-users). The Guarantee of Origin would serve best to monitor the renewable part, but currently only two countries use GoOs for the monitoring of disclosure. Other countries only use statistical information and are running the risk of counting renewable energy twice. RECS International calls upon governments to correct this and co-ordinate the use of the GoO for disclosure.  

Guarantees of origin (GoOs) are certificates that prove the origin of traded and supplied electricity to costumers. All EU-countries ought to have a GoO system in place by now (but some still do not). But besides this lack of legislation   in some countries, there are other problems with the GoO. Proving the origin is one thing, but to avoid double counting towards statistics, or even double selling of one kWh of renewable power, the GoO also must be redeemed (taken out of the market). At present, only the Netherlands and Austria are using the GoO to monitor disclosure. This means that suppliers are supposed to redeem GoOs to account for the percentage of renewable energy in the fuel mix of supplied electricity (in the next year). RECS International supports this approach and considers this the most accurate way to inform the consumers about the fuel mix.

The problem with double counting starts when the country that is using the GoO for disclosure, imports substantial volumes of renewable electricity. In Austria and the Netherlands , the information provided by the suppliers by applying the redemption of the GoO is perfectly sound.   The exporting country must of course subtract the exported renewable energy in its calculations for disclosure. However, in most cases this does not happen. Thus the exported renewable energy is used for disclosure in the exporting country as well as the importing country: a pure form of double counting.

Currently this double counting is now happening to both countries, concerning large amounts of imported renewable electricity. For instance the import in the Netherlands in 2004 was about 12 TWh (domestic production was around 4 TWh, with a national indicative target of 9 TWh). In 2005 the import is estimated at 6 TWh. This leads to substantial impact on the figures used for disclosure. RECS International calls upon the governments and the European Commission to co-ordinate this better and come to a uniform policy framework.

Recently RECS International made an inventory of the use of the GoO by EU member states. The main conclusion is that governments do not co-ordinate the use of the GoO, that substantial double counting occurs and possible double selling. RECS International warns the governments that this might damage the development of renewable energy. After all, the consumer is paying for the support for renewable energy in all countries. With the threat of double counting and double selling, the support of consumers might be put at risk.

Peter Niermeijer

General Secretary

RECS International

 
Source: GP Newsdesk

             
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