Green Certificates

Green Certificates - renewable energy certificates are a financial and regulatory instrument used worldwide to implement a renewable energy (RE) quota mechanism and support its development.

The renewable energy quota mechanism implies:

• a commitment by energy suppliers, distribution companies, large consumers to generate/purchase a certain share of renewable energy.
• Voluntary commitments by a number of large companies, including the RE100 initiative, to provide their energy needs exclusively through RES.
  

These are companies implementing clean, low-carbon production programmes as well as producers of consumer goods using this as a marketing strategy. 

Green Certificates allow the production, supply and consumption of renewable energy to be controlled and monitored.
Green Certificates reflect the environmental value of the renewable energy generated.
The issuance of a 'certificate' is proof of its carbon-free origin.
With the purchase of a 'green certificate', renewable energy is generated on behalf of the buyer.
1 certificate corresponds to 1 MWh of electricity generated from solar or wind energy.

The certificates include data :

1. Information identifying the generating facility;
2. Type of renewable energy (solar, wind, small hydro, etc.);
3. Location of the generating facility;
4. Installed capacity of the facility;
5. Name of the facility;
6. Unique identification number;
7. The period of time during which the energy was generated.

Renewable energy certificates do not fall under securities legislation and are not such.
The GS are records in an electronic database.
The issuance of VOCs is ensured by the regulators of the electricity and capacity market, which are part of the energy market infrastructure.
In the European Union these are called Guarantees of Origin.
Their issuance is regulated by the Renewable Energy Directive (Directive 2009/28/EC).

In order to implement the directive, the European Energy Certificate System (EECS), developed by the Association of Issuing Bodies, is in place in the EU.
In the US, EECs are called Renewable Energy Certificates (RECs).
"The Center for Resource Solutions administers a voluntary programme that ensures that RECs are properly accounted for and that no double counting occurs.

Under the Green-e Energy programme, participants are required to undergo an annual transaction audit to ensure that RECs meet the requirements for certification. RECs are increasingly issued and tracked through regional tracking systems/registries such as WREGIS, NEPOOL, GATS, ERCOT, NYGATS, NARR, MIRECS, NRTEC, NC-RETS and M-RETS.
 

Procedure for EQ:

1. RES - producer receives 1 certificate for every 1 MW*h of electricity produced,
2. The regulator assigns a unique identification number to each certificate,
3. RES energy is then fed into the electricity grid and the corresponding GS can be sold on the open market.

The markets for GS and electricity are different markets.
Although there is an exception - the transfer of the certificate from the seller to the buyer within an electricity purchase and sale contract.
The certificate does not have a monetary denomination and is priced on the market depending on supply/demand.
The renewable energy certificate is redeemed in a lump sum and irrevocably upon fulfilment of the legal or regulatory requirements by the certificate holder).
There are no complete equivalents to the GS in the market.
So far, the consumer and the renewable energy consumer have entered into direct contracts.
In the absence of a market, the cost of 1 kWh of RES energy is determined by contractual relations.
At the same time, RES energy generation without taking into account HPPs is 0, 1 % of the total balance.
 
PV is one of the mechanisms of the RES market. Eco Viewing.