guarantee of origin certificates and fit-systems · guarantee of origin certificates and...

Guarantee of Origin Certificatesand FIT-systems

Jan Vorrink, manager EnerQ

International Feed-In Cooperation, 4th workshopLjubljana, 18th October 2007

Content

• Introduction EnerQ

• The E-Certificate System

• Experiences with different support systems

• Recent developments

• Possibilities of bridging the gap between different support systems

• International Market

• Future developments

2

Introduction EnerQWho is EnerQ?

• EnerQ grants the MEP subsidy, a production subsidy for renewable energy

• Subsidy is based upon Guarantees of Origin (issued by CertiQ)

• A 100% daughter of TenneT, the Transmission System Operator (TSO) of the Netherlands

• Shares of TenneT are owned by the Ministery of Financial Affairs

3

Introduction EnerQWhat is MEP subsidy?

4

• MEP is an abbreviation for ‘Environmental Quality of the Electricity production’

• Goal of the subsidy is to stimulate the production of renewable- and CHP-electricity

• The subsidy is a set tariff per produced kWh of electricity during the subsidy period (10 years for renewable electricity)

• MEP eliminates the uneconomic top of an installation

The E-certificate SystemMandatory System based on Garantees of Origin

Approval request

Request

MEP-subsidy

Electricity Electricity

Certificate trade

Measurements

Certificate

5

Experiences with different support systems

6

• Certificate system started with a consumption driven incentive; ecotax exemption for consumers

• Consumption driven incentive replaced step by step by a production subsidy; the MEP subsidy(eliminating the uneconomic top of the production of renewable energy during 10 years)

• Both subsidies are granted over the certificates issued at CertiQ

• Now only the production of renewable electricity is subsidised, the certificate trade has become a voluntary system

Statistics CertiQSupport systems are succesfull

Consumption incentiveConsumption incentive Production subsidyProduction subsidyTransfer periodTransfer period

7

Statistics CertiQThe market continues…


8

Statistics CertiQSystem is consumer driven


9

10

Statistics EnerQMEP subsidy and certificates

Transfer periodTransfer period Production subsidyProduction subsidy

Recent developments

11

Recent developments• At August 18 2006, the Minister of Economic Affairs

decided to set the MEP subsidy tarrifs for new subsidy requests to € 0,-

• Decision was made based upon predictions that RE directive target of 9% in 2010 will be reached

• Political discussion what kind of incentive would be best for the future.

• Choice for extension of Feed-in-premium to bio-gas and tariff-link with Electricity price(SDE)

Possibilities of bridging the gap between different support systems

Product costsR&D subsidy

Investment subsidy

Exploitation subsidy

Quota / disclosure

Stimulation of competition

13


Only feed in subsidy

14


Only quota

15


Combination of Feed in subsidy and Quota

16

International Market

Electricity Electricity Consumer

Green valueCertificate

Trader

Trade of certificates


Environmental

friendly energy


Trader Consumer

Green value

Certificate

Foreign CMO

17

18

Electricity Electricity Consumer


Trader


Environmental

friendly energy


Trader Consumer

Green value

Certificate

Foreign CMO


Feed in tariff Green labels

Investment subsidy

Disclosure

MEP Tax incentive

Production subsidy (36o)

Quota / RPS


19


Environmental

friendly energy


Trader Consumer

Green value

Certificate

Foreign CMO


Feed in tariff Green labels

Tax incentive

Investment subsidy

Consumer



Disclosure

MEP

Production subsidy (36o)

Quota / RPS

Cons. 72 TWh

270 TWh

Int. trade 72 TWh

Imp. NL 33 TWh

Cons. 137 TWh

Trade NL 52 TWh

Subsidy 22 TWh = 1.800.000.000 Euro’s

Electricity ElectricityTrader

49 TWh

Tax 35 TWh=2.100.000.000Euro


European Energy Certificate systemEuropean Energy Certificate system

-- totals (totals (millionmillion MWhMWh))

Since 2001 20052005 20062006 20072007

(to date)(to date)

IssuedIssued 270 4848 6666 6868

ExportedExported 72 1414 1818 1212

RedeemedRedeemed 137 2525 3939 4040

20


21

22

Future developments

• EECS standardised GO is now implemented in 8 countries + 1 EEA, but according to the European directive 2001/77/EC, it will be implemented in 27 (+2 EEA) countries

• Combined Heat and Power (CHP) is now implemented nationally, but following a European directive it will be internationally implemented in 2007

• Disclosure in The Netherlands is now implemented with statistical data, soon it will be implemented more secured via the Certificate System

Thank you for yourattention!

www.certiq.nl - www.enerq.nl

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