Guarantees of Origin Scheme 30 th November 2011

1. Guarantees of Origin Scheme30th November 2011

2. Guarantees of Origin – a brief history • EU Directive 2001/77/EC - first mentioned GOs • Replaced by the Renewable Energy Directive 2009/28/EC • Legislation transposed on the 28th of March 2011 • S.I. (Statutory Instrument) 147 of 2011 • SEMO named as the Issuing Body for Ireland • CER tasked with developing the Supervisory Framework

3. What is a Guarantee of Origin? • “Guarantees of origin issued for the purpose of this Directive have the sole function of proving to a final customer that a given share or quantity of energy was produced from renewable sources.” • - Section (52), DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL • of 23 April 2009

4. Renewables Directive • The sole purpose of GOs is Fuel Mix Disclosure • There is no connection between national targets and FMD • GOs do not follow the physical flow of energy

5. What is a Guarantee of Origin? • Standard size of one megawatt hour (1MWh) • Issued on request of the Generator • Guarantee that electricity has been produced from a renewable source

6. Guarantee of Origin – Renewable Sources • Examples of renewable sources: • Wind • Solar • Ocean Energy • Biomass • Hydropower • Landfill Gas • Aerothermal • Geothermal • Hydrothermal

7. Fuel Mix Disclosure – Interim Solution • SEMO completes the calc on an annual basis • All Island Fuel Mix • Suppliers submit declarations and ‘claim’ generation (Both in-market and out-of-market) • Interim solution for 2008, 2009, 2010 • For these years FMD was based on physical flows

8. FMD 2010 Breakdown

9. Fuel Mix Disclosure – Output • SEMO provides an individual Fuel mix breakdown to Suppliers • And All Island Mix breakdown • Display on their customers’ bills • Consumers may use this comparison when deciding which supplier to choose

10. Fuel Mix Disclosure – Enduring Solution • Enduring solution to be in place next year for 2011 calculation • Next year Suppliers will be able to declare Irish GOs • GOs do not follow physical flow • Deadline for Supplier Submissions for Disclosure Period 2011 is the 31st March 2012

11. Guarantee of Origin - Status • Used • Deemed to be used in a disclosure period in which the GO is counted for FMD purposes • A GO can only be used once • Active • 12 months from the date of production • Can be used in any disclosure period in which it is active • e.g. a GO issued on 1st of June 2012 can be used in FMD 2012 or FMD 2013

12. Guarantee of Origin - Status • Expired • Expires after 12 months • Can still be used or transferred after expiration • Cancelled • When used in FMD • If not used in final FMD Disclosure Period, into Residual Mix • Cancelled GOs cannot be used or transferred again

13. GO Scheme – Business Processes • SEMO will administer the following processes: • Registration • Request • Issuing • Transfer • Import • Revocation

14. GO Scheme – Business Processes

15. GO Calendar • Some processes are ad hoc • Others are quarterly

16. GO Registration • Download from the SEM-O website • Pack for Generators, Pack for Suppliers • ‘Enable Macro’ document available on the website • Pack must be fully completed

17. SEMO Website - GOs

18. GO Registration – Authorised Users • Nomination of Authorised User (Internal) • Nomination of External Agent (External) • Can only have either an internal or external authorised user to Request, Issue, Transfer • Supplier can act as an External Agent • Password provided must be 8 characters • Authorised Users and Passwords will be logged

19. GO Registration • Once completed email to • guaranteesoforigin@sem-o.com • Acknowledgement email with Ref Number will be sent

20. GO Registration • Within SEM Generators – details checked internally • Out of SEM Generators – details checked with DSO • Suppliers – details checked internally

21. GO Registration • ID will be issued, this is separate to any market IDs • This ID will be used for all correspondence relating to GOs and FMD • Central registry will contain these IDs • SEMO asks if participants can confirm receipt of this ID

23. GO Registration • Enduring Registration Process will take 21 Working Days to complete • Need to have Initial Registrations complete by the end of 2011 • 19 Working Days until Xmas!!!

24. GO Requests • Ad Hoc process • Generator sends request, receives Ref Number • Two validation checks • 1) Is the Generator registered for the scheme? • 2) Are template details correct? • 2 WDs for this validation • Except for 10 WDs before end of quarter, extended to 5 WDs

25. GO Requests • Requests can be for more than 1MWh, varying Start/End dates • Verified Requests added to the request log • Invalid Requests rejected • SEMO will be backdating GOs for 2011 • Start sending in requests once registered for the scheme

27. GO Issuing • Quarterly process • Metered Generation (MG) pulled from SEM Market Systems (within market) and requested from MRSO (out of market) • 10 Working Days after end of quarter

28. GO Issuing • Cross check Requests against MG • a) If Requested MWh <= MG – GOs Issued • b) If Requested MWh > MG – GOs Rejected • e.g. Request MWh = 10 • MG MWh = 9 • Authorised User will be informed that 9 are available • Request can be resubmitted with revised values • Resent within 2 WDs

29. GO Issuing • Electronic document as per the S.I. • Each certificate has its own unique ID • Certificates emailed to the Authorised User (20 WDs after the end of the quarter) • Authorised User calls SEMO with their password • The file password is then given • Password is randomly generated • Certificates can then be accessed

30. GO Issuing – Format of a GO • Will be in XML format

32. GO Transfer • Ad hoc process (need to be completed by 31st of March 2012 for 2011 FMD) • Current holder’s Authorised User sends in a Transfer Request • Details of the New Holder (GO Participant) • SEMO verifies the details and updates the Central Registry • New updated certificates sent to New Holder

33. GO Transfer

34. GO Transfer - Exports • Export transfers are included here – need MS • New certificates not sent on – registry updated as ‘Exported’

36. Renewables Attributes Transfer • Quarterly process • Supplier advises which Generators they have PSO PPA agreements with • SEMO will be checking PSO lists • However, need as much info as possible • Attributes will be assigned automatically every quarter • If details change, must advise SEMO

37. GO Revocation • Ad hoc – Only where SEMO have grounds to suspect fraud; rules set out in S.I. • SEMO will advise the CER of concerns, however final decision will be taken by SEMO • Post notice to current holder – must be written notice as per S.I. • Previous holders will be advised, if contact details are available • Update Central Registry with ‘Revoked’

39. GO Imports • Ad hoc process • Advise SEMO ASAP – will need to contact Member States to verify validity • If no response from MS after 10 WDs - rejected • Minimum details required – Static Data • SEMO will work on building contacts within Member States

41. Conclusions • Registration process to be completed • Requests accepted ad hoc • Issuing once per quarter • Transfers accepted ad hoc • Imports accepted ad hoc • Revocation – as required

42. Next Steps • Registrations to commence asap • Once registered send through requests • Backdating to commence for 2011 in January • FMD MOST to be held in January – All Island

43. Next Steps

44. Q&A • Thank you for your attention!