RENEWABLE ENERGIES COOPERATION CERTIFICATES (RECC)

A REEEP-MEDREP Project in the Mediterranean

Gammarth, Tunisia - 22 October 2007

Marianne OsterkornREEEP International Director

1. REEEP is a global Type II partnership launched by the UK government at the WSSD

2. REEEP currently comprises of more than 224 partners representing 38 governments, 9 central governmental agencies, regional governments and agencies, businesses and NGOs

3. All Partners are committed to accelerating the uptake of renewable energy and energy efficiency

4. REEEP is funded by the EU and 11 governments: Austria, Australia, Canada, Germany, Ireland, Italy, the Netherlands, Norway, Spain, US, and UK, the major donor of REEEP

REEEP– Renewable Energy and Energy Efficiency Partnership

REEEP currently undertakes 68 projects in 39 countr ies

1

17

14

9

13

16

1 2

1

4

2

5

1

2

2

12

12 2

1

1

3

1 1

5

23

1

2

3

2

2

1

1

1

2

1

1

1

2

1

Renewable Energy57%

Energy Efficiency43%

The total REEEP project portfolio is well balanced in terms of thematic and sectoral objectives

Finance49%

Policy51%

The EU implemented a number of directives promoting renewables and energy efficiency

� Quantified national targets for consumption of electricity from renewable sources of energy

� National support schemes plus, if necessary, a harmonized support system

� Simplification of national administrative procedures for authorization

� Guaranteed access to transmission and distribution of electricity from renewable energy sources

The EU directives aims that by 2010 about 22% (21% at EU25) of the electricity comes from renewable sourc es

Many countries will have difficulties to reach thei r targets

A variety of national support schemes blocks the development of a liquid European renewable market

MWh

Electricity

Market for Electricity

Environmental Benefit

Certificate

Market for Certificates

Certificates provide added Value of green Electrici ty

Market for green Electricity

Certificate = Guarantee of Origin

Source: Energy Information Administration: International Energy Outlook 2006

+� Market driven

Demand for Electricity and Certificates

�market prices for Electricity and

Certificates

Market induced Insecurity for

Investors

National Framework

high Level of Security for Investors

Feed-in Tariffs

� Demand is equal tototal Production

� fixed Price

high Level of Securityfor Investors

Quota

Penalty / Incentive

Certificate System

Demand must be created through regulatory framework

Tracking the Life cycles of certificates

Certification” of the Plant

Measuring of produced Electricity

Issuing of Certificates

Transfer of Certificates

Redemption of Certificates

Issue

TransferRedemption

Issuing Body

Tunesia

Certificates can be traded cross border and de-link ed from electricity

Issue

Transfer

RedemptionIssuing Body

Italy

Issue

Transfer

Redemption

AUTIssuing Body

RECS Interntional

Electricity

Electricity

Electricity

Registry

Registry

Registry

1. Mandatory recognition of RES certificates from the North Africanregion in the EU 25

2. Recognition that certificates can be sold independently from theelectricity and to be traded cross border

3. Robust and fraud resistant certificate system whi ch guarantees a transparent tracking of the life cycle s of the certificates with a long term legal framework in all involved countries

4. Cross border trade is already happening on a voluntary bases in 20 European countries ( guarantee of origin, disclosure )

Certificates could promote renewable production in North Africa and help the EU 25 to achieve their targets

Renewable Energy Cooperation Certificates (RECCs) in the Mediterranean Area

� Promote RES and EE in the Mediterranean area, Red Sea and Middle East region

� Identify countries in the region that will include TRECS in their national policies

� Proposal for the EU legislation to interlink the Mediterranean region with European certificate systems

� Implementation of rules and methodology of this certificate system ( RECCs )

Establishing TREC Trading between Tunisia and Italy

� Develop institutional framework for national TREC system in Tunisia and establish links to potential TREC buyers in Italy

� Complete pilot TREC trade project and identify potential projects that will trade TRECs

� Identify and seek support from stakeholders and RE market players

Marianne Moscoso-OsterkornREEEP International SecretariatVienna International Centre

Vienna, AustriaMarianne.Osterkorn@reeep.org

+43 1 26026 3425

www.reeep.orgwww.reegle.info