Energy Certification
Goal of a certificate trading scheme is to encourage electricity producers to emphasise renewable sources of energy such as wind, solar, biofuels and hydro power, as well as to provide reliable information to electricity consumers: informed consumers make educated choices.
A working market enables electricity consumers to prefer renewable energy sources to fossil fuels. To facilitate this, electricity is tracked from generation to consumption with the aid of a “book and claim” system, using tradable electricity certificates. When a megawatt hour of electricity is generated, the producer gets a tradable certificate. When a megawatt hour is consumed, the certificate is cancelled by electricity supplier or consumer to prove the consumption of its renewable value. In between, the market channels the monetary benefit to the producer, and optimises the resource allocation.
Alternatively, governments can set quotas for energy consumers, thus creating extensive demand for energy certificates. In a quota obligation system, consumers have to buy and cancel certificates to prove that a certain share of their total electricity consumption comes from renewable energy sources.
Overwhelmed by Energy Certificates? Grexel can help
Government bodies around the world are required to introduce systems and whole new markets to support energy efficiency, greenhouse gas reduction and renewable energy generation, as well as consumer protection and empowerment. 
An essential building block of such markets is a certificate trading scheme that unbundles the outcome of generation – electricity – from its origin. The system allows government bodies and other organisations to track the origin and ownership of generation attributes. In order for the certificate system to work, the legislative, regulatory and administrative frameworks must also be in place.
The markets, legislation and system requirements for trading green commodities are still taking shape. To set up the system in your region, you will need a partner with the very best knowledge of the mechanics of energy certificate markets. As your partner, Grexel can assume full responsibility for day-to-day operation of the system, as well as help you to cope with the changing needs of the international legislation and standards such as EECS® (European Energy Certificate System).
What is Grexel's Role?
Our offering includes:
- Flexible and dependable business infrastructure solutions and services for tracking the ownership of green commodities, such as Guarantees of Origin or green certificates
- Implementation and management of central energy certificate registries
- Hands-on assistance with market design and regulatory development
- Issuing Body services
Market design and regulatory development
How to implement a certificate market in your country or region? What are the requirements? It should be in accordance with the existing local legislation, be compatible with the markets in other countries now and in the future, be fraud-resistant and yet simple enough to enable fast adoption by the market parties.
Every market and country has its unique characteristics. With Grexel’s long experience in Issuing Body duties and technical infrastructures, we are able to suggest you the best course of actions on how to introduce an energy certificate market scheme in your region.
In addition to planning and implementing a central registration database to meet your needs, our professional services can include, for example, recommendations on implementing necessary legislation, regulation and domain protocols. We can also address your local special requirements such as administrational procedures, metering systems and integration to the surrounding infrastructure.
Do you want to learn more about market design and regulatory development? Contact Grexel.
Our experience includes designing
- RES Guarantee of Origin markets according to directives 2009/28/EC and 2001/77/EC
- CHP Guarantee of Origin markets according to the directive 2004/8/EC
- Electricity disclosure according to directives 2003/54/EC and 2009/72/EC
- Certificate based support system (quota obligation)
- Energy source disclosure for heating / cooling
Issuing Body services
Need to organise issuing of Guarantees of Origin or other energy certificates in your country?
Grexel can assume full responsibility for practical implementation and day-to-day operation of your region’s certificate trading scheme. Our operation model and processes are compatible with the relevant EU directives (2001/77/EC, 2009/28/EC, 2003/54/EC), EECS® and national legislative framework. Grexel is a member of the Association of Issuing Bodies, AIB.
Case Sweden
Grexel became the issuing body for EECS (European Energy Certificate System) in Sweden in March 2006. At that time the national transmission systems operator, Svenska Kraftnät, withdrew from the EECS scheme as it was clearly outside their core business: maintaining and developing the grid.
Svenska Kraftnät is the issuer of the national Guarantees of Origin (GO) mandated by the government. However, the national GOs are delivered to Grexel and converted into EECS-compatible certificates. Grexel then takes the responsibility for the implementation of EECS in Sweden. The arrangement enabled the continuance of EECS in the country and gave birth to a fruitful public-private co-operation in Guarantee of Origin issuance.
Grexel’s responsibilities as an Issuing Body are:
- Accreditation and registration of production facilities
- Issuing, transfer, cancellation, withdrawal, and expiration of certificates
- Central registry provision and operation, and administration of accounts
- Verification and monitoring of the system
- Provision of reports for different authorities and for the public
- Development of relevant domain protocols
- Development and dissemination of the detailed rules according to chosen regulative framework
Related links:
AIB, Association of Issuing Bodies
EU directive, 2001/77/EC
EU directive, 2009/28/EC
EU directive, 2003/54/EC (pdf)