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Tradable green certificates ASCerT

Tradable green certificates ASCerT. Sandor MOLNAR REEEP - REC Workshop Szentendre 2003. ASCerT project basics. 12 month project (Jan – Dec 2003) Supported by European Commission Directorate General for Research Objective:

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Tradable green certificates ASCerT

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  1. Tradable green certificatesASCerT Sandor MOLNAR REEEP - REC Workshop Szentendre 2003

  2. ASCerT project basics • 12 month project (Jan – Dec 2003) • Supported by European Commission Directorate General for Research • Objective: To examine the potential for using tradable green certificates to promote renewable electricity in five EU accession countries.

  3. Composition of the team • Bulgaria, ESD Bulgaria • Poland, EC BREC • Hungary, Systemexpert • Czech Republic, Cityplan • Romania, ICEMENERG • UK, ESD • Austria, KWI

  4. Certificate market Environmental benefit - certificates Energy - kWh Energy market RE producer Fundamental principle for TGCs The ‘green value’ is split from the physical energy

  5. Certificate market Environmental benefit - certificates Energy - kWh Energy market RE producer Green certificate basics Tradable green certificates are: • Issued to producers for each unit of energy produced by the eligible (i.e. accredited) renewable plant • Denominated in units of energy (e.g. 1 MWh) • Usually electronic, for ease of trade, tracking and storage

  6. TGC Certificate market Element (1): Definition of the certificate Environmental benefit - certificates Other points: • Certificates can be sold separately from the electricity • And unlike electricity: • Consumer does not have to be physically (grid) connected to producer • Certificates do not have to be sold/consumed at time of generation • Enables competition & increases market efficiency

  7. Certificate uses • For guarantee of origin of electricity (requirement of EU Renewables Directive) • For green tariffs – consumer choice • For enabling trade • For renewable energy support schemes • Use with financial support (subsidies, tax breaks, feed-in tariffs) • Use for quotas (or ‘obligations’ or ‘portfolio standards’)

  8. Value of TGC to support RES-E System marginal cost (mc) of RES-E production RES-E producers competitive without support up to here Plant B Plant A Wholesale electricity Price (P) A TGC scheme creates a market value for certificates to cover additional cost of RES-E production x x

  9. ASCerT considering application of TGCs in Accession countries • Main interest – using certificates to meet renewable energy targets (indicative targets part of the RE Directive) • Can consider other applications as well • Guarantee of Origin • Mechanism to trade renewable benefits international (v. limited demand at present, but likely to increase)

  10. ASCerT Objectives ‘Intellectual’ objectives • Explore the options for utilising TGCs to achieve renewable electricity targets • Examine the prospects for integration of TGC systems between the NAS and the EU • Examine the use of TGC systems in the light of current and forthcoming EU legislation ‘Outward looking’ objectives • Raise awareness • Help achieve consensus among key stakeholders • Assist the NAS to frame and develop market mechanisms to support renewables growth

  11. Project approach • Fact: Project has very modest budget • Important to ‘work smart’: • Use existing information. • Maximise ‘in-kind’ contributions from stakeholders • Important to maximise benefits for partners, for example: • Secure co-funding? • Secure follow on work? • Use project work to support other company activities? • Marketing – raise company profiles in area?

  12. ASCerT activities ASCerT activities in each study country: Phase 1: Inception - Formation of Country teams International activities: Phase 2: Assessment of electricity sectors: - Working document • Regular ‘Core team’ meetings • International seminar (Budapest, September 18th) • International seminar (Sofia, December 4th) • Project reporting (ESD Ltd) • Phase 3: Outline design of national schemes: • Working document • National seminar (September?) Phase 4: Cost benefit analysis & recommendations: - Working document - National seminar (December?)

  13. Composition of the Hungarian country team • After a bit of amendment to the invitation letter, it was sent to the potential partners and experts of this field, with the agreed necessary information . This was successful, as the Hungarian Country Team was founded with the aim to incorporate different areas of research and practice by experts from the following institutions: • MVM, the Hungarian Power Companies • REC, Regional Environmental Center • CEU, Department of Environment • Co-Energy, engineering firm specialising in renewable energy • Ministry of Environment, Dept. of Strategic Planning • Ministry of Economic Affairs,

  14. Thank you for your attention!

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