Download 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:
To examine the potential for using tradable
green certificates to promote renewable
electricity in five EU accession countries.
Composition of the team
•Bulgaria, ESD Bulgaria
•Poland, EC BREC
•Hungary, Systemexpert
•Czech Republic, Cityplan
•Romania, ICEMENERG
•UK, ESD
•Austria, KWI
Fundamental principle for TGCs
The ‘green value’ is split from the physical energy
RE
producer
Environmental
benefit certificates
Energy kWh
Certificate
market
Energy
market
Green certificate basics
Environmental
benefit certificates
RE producer
Energy kWh
Certificate
market
Energy
market
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
Element (1):
Definition of the certificate
Environmental
TGC
benefit certificates
Certificat
e market
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
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’)
Value of TGC to support RES-E
RES-E
producers
competitive
without support
up to here
A TGC scheme creates a market value
for certificates to cover additional cost of
RES-E production
Plant
A
Plant
B
x
x
System
marginal cost
(mc) of RES-E
production
Wholesale
electricity Price
(P)
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)
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
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?
ASCerT activities
ASCerT activities in each study country:
Phase 1: Inception
- Formation of Country teams
Phase 2: Assessment of electricity sectors:
- Working document
Phase 3: Outline design of national schemes:
- Working document
- National seminar (September?)
Phase 4: Cost benefit analysis &
recommendations:
- Working document
- National seminar (December?)
International
activities:
• Regular ‘Core
team’ meetings
•International
seminar (Budapest,
September 18th)
• International
seminar (Sofia,
December 4th)
•Project reporting
(ESD Ltd)
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,
Thank you for your attention!