Country profiles: Great Britain

Transcription

1 Cuntry prfiles: Great Britain Last updated: 27/04/ Implementatin f Tracking Systems 1.1 Electricity Disclsure A disclsure scheme has been in place in Great Britain since 2005 [Statutry Instruments 2005 Nº. 391 Electricity and Gas (Fuel Mix Disclsure) Regulatins 2005 and Standard Licence Cnditin 21 1 ]. The Regulatins implemented Article 3(6) f Directive 2003/54/EC related t the cmmn rules fr the Internal Market f Electricity and intrduced a new licence cnditin that bliges electricity suppliers t prvide cstumers n their bill with details f the mix f fuels used t prduce the electricity supplied t them as well as certain envirnmental infrmatin. In December 2005, Ofgem (Office f the Gas and Electricity Markets) prvided the guidelines (Fuel Mix Disclsure by Electricity Suppliers in Great Britain Guidelines 2 ) t help suppliers t present the disclsure infrmatin t their cnsumers, with standardisatin f certain aspects f fuel mix disclsure (riginally the Standard Licence Cnditin 30A that has been replaced nw by the Standard Licence Cnditin 21) t aid cnsumer s cmparisns f different suppliers prduct. These Guidelines prvide infrmatin n the calculatin, presentatin, evidence and auditing. In 2010, small changes t the disclsure system have been intrduced, namely, timing fr suppliers t prvide infrmatin n their surces fr the prductin f electricity as well as timeline fr disclsure (1 st Octber). The first year in which infrmatin was disclsed t cnsumers was frm 1 st Octber 2005 t 30 September 2006, referring t electricity supplied frm 1 st April 2004 t 31 st March Ofgem, n behalf f DECC (Department f Energy and Climate Change), is the cmpetent bdy respnsible fr disclsure and the issue f Guarantees f Origin fr electricity prduced frm renewable energy surces. The attributes that have been disclsed are: Energy surce in the fuel mix (share); Envirnmental infrmatin: CO 2 emissins (g/kwh) and radiactive waste (g/kwh); In terms f energy surces, the fllwing are distinguished within the disclsure statement: Cal; Natural Gas (gas-chp); Nuclear; Renewable (wind, slar, gethermal, wave, tidal, hydrpwer, bimass, landfill gas, sewage treatment plant gas and bigases); Other Electricity btained via an Electricity Exchange f imprted frm an undertaking utside the Cmmunity Great Britain has varius frms f allcatin and tracking systems fr electricity: 1 Statutry Instruments 2005 N.391 Electricity and Gas The Electricity (Fuel Mix Disclsure) Regulatins And Standard Licence Cnditin 21, available here: 2 Ofgem Website, Fuel Mix Disclsure by Electricity Suppliers in Great Britain Guidelines - Dec 05 - Ofgem ( Letter:

2 Summary f findings fr Great Britain Renewable Energy Guarantees f Origin (RE-GO, called in Great Britain REGO): used fr disclsure purpses Renewable Obligatin Certificates (ROC): used fr supprt (quta and suppliers) system Feed-in-tariff: used fr supprt Levy Exemptin Certificates (RE & CHP): used fr supprt CHP- Guarantees f Origin (CHP-GO, called in Great Britain CHPGO): used fr disclsure purpses (in thery) Great Britain Residual mix: used fr disclsure purpses The envirnmental infrmatin prvided t cnsumers shuld be in the frm f a single figure specific t the fuel mix f the supplier fr each f the tw measures (carbn dixide and radiactive waste). The bligatin t prvide fuel mix and envirnmental infrmatin is placed n each supply licensee. Therefre, custmers subscribing t a certain prduct must receive infrmatin n the fuel mix f all electricity supplied by the licensee (the persn that hlds the supply licence) as ppsed t the particular prduct r retail brand. The name f the licensee shuld be made clear in the infrmatin. If suppliers wish t prvide infrmatin n the fuel mix f a particular prduct, they can d s by displaying the ttal supply by the licence plus by adding a clumn in its fuel mix disclsure table t display the prduct fuel mix. This allws the cnsumer t cmpare the fuel mix f a certain prduct with that f licensee s ttal supply fr the disclsure perid. Disclsure is dne annually fr the financial year perid (starting 1 st April and ending 31 st March each year). Infrmatin must be disclsed in the 1 st Octber immediately after the end f the disclsure perid Disclsure Figures Table 1 summarises Great Britain s fuel mix disclsure figures since 2005 until 2013 as well as the CO 2 emissins and nuclear waste. Table 2 shws the suppliers fuel mix by fuel type in 2013 as well as the CO 2 emissins and nuclear waste fr the same year. Table 1: GB Fuel Mix Disclsure Figures (%), CO2 emissins (kgco2/kwh) and nuclear waste (g/kwh) fr (with the exceptin f 2010) Attributes Cal (%) Natural Gas (%) Nuclear (%) Renewable (%) Other (%) CO2 emissins (kgco 2/kWh) Nuclear Waste (g/kwh) Surce: 2/15

3 Summary f findings fr Great Britain Table 2: Fuel Mix Disclsure Figures f Great Britain Electricity Suppliers fr the disclsure year f 2013 Nte: CO2 emissins are in kg/kwh; nuclear waste relates t high-level waste in g/kwh. British Gas (includes Centrica and Scttish Gas) EDF Energy (includes Lndn Energy, Seebard and SWEB Energy) e.n (includes Amerada, East Midlands Electricity, Eastern Electricity, Midlands Gas, Nrweb Energy, Pwergen, Sterling Gas, Tesc Energy and TXU Energi) npwer/rwe (includes Calrtex, Daily Telegraph, Independent Energy, MEB, Midlands Electricity, Natinal Pwer, Npwer Limited, Npwer Nrthern Limited, Npwer Yrkshire Limited, Npwer Direct Limited and Yrk Gas) SSE (Scttish & Suthern Energy) (includes Atlantic Electric and Gas, Scttish Hydr-Electric, Suthern Electric, and SWALEC) ScttishPwer (includes AA, Beacn, Ideal and Llyds Ideal) Surce: Envirnmental Infrmatin Envirnmental infrmatin in terms f CO 2 emissins (in grams f carbn dixide per kilwatt hur) and radiactive waste generated (in grams per kilwatt hur) must be prepared and made available by suppliers in the disclsure perid. This infrmatin shuld be in the frm f a single figure specific t the fuel mix f the supplier fr each f the envirnmental attributes (carbn dixide emissins and radiactive waste). The calculatin f these figures shuld be based n the use f the standardised emissin factrs prvided by UK s Department f Energy and Climate Change (DECC) in the Fuel Mix Disclsure Table published n the DECC s website 3. The basis fr the calculatin f the radiactive waste factr is t be fuel burnt in the reactr (t be subsequently discharged as spent fuel. This is t be based n infrmatin prvided by generatrs an averaged acrss all technlgies. 3 Fuel Mix Disclsure Table n the DECC s Website: 3/15

4 Summary f findings fr Great Britain This infrmatin is updated by suppliers in each subsequent year n the Disclsure Date and prvided t the cnsumers at least nce a year n a bill r statement in the perid and in prmtinal materials. This may be by means f a reference n the bill, statement r prmtinal material t a readily accessible surce such as a web page. Mrever, if suppliers want t, they can prvide a wider range f envirnmental infrmatin, e.g. emissins f sulphur dixide r ther pllutant Suppliers Fuel-Mix Calculatins DECC is the bdy respnsible fr calculating the fuel mix figures and t disclse them nce a year. The supplier s fuel-mix infrmatin fr a given Disclsure Perid (starting in the 1st f April and ending n the 31st f March f a given year) is calculated based n the fllwing evidence f the surce f energy: 1. RE-GO (called in the UK REGO) shuld be used as evidence fr the identificatin f supply as renewable. Hwever if they are nt available the residual fuel mix percentages in the DECC s Fuel Mix Disclsure Data Table must be used t make the necessary calculatins; 2. Generatrs declaratins shuld be used as evidence fr the identificatin f ther surces, i.e. cal, il, natural gas, nuclear and ther. In the case that these are nt available, the residual fuel mix percentages in the DECC s Fuel Mix Disclsure Data Table must be used t make the necessary calculatins The evidence f supply frm specific generatin surces, RE-GO r generatr declaratins, shuld be held by the supplier at midday n 1 st July immediately fllwing the end f the disclsure perid. A generatrs declaratin shuld include the fllwing specific infrmatin 4 : The name and lcatin f the generating statin; The name f the licence t which the infrmatin in the generatr declaratin relates; The disclsure perid t which the generatr declaratin relates; The fuel used in the generating statin, and where the generating statin uses mre than ne fuel the prprtin f each fuel used accrding t the calrific value f the fuel used; The amunt f electricity subject t the declaratin, expressed in MWh; A statement that the generatr has nt issued generatr declaratins r transferred RE-GO in relatin t an amunt f electricity that exceeds the ttal utput f the generating statin in the disclsure perid; The signature f the directr f the generatin cmpany r persn f similar standing where the generatin licensee is nt a cmpany t verify the abve facts. The generatrs declaratins must be hld by the suppliers fr electricity prduced frm cal, natural gas, nuclear and ther and supplied in each disclsure perid. When the electricity supplied came frm utside Great Britain, suppliers must prvide evidence f the rigin f that electricity: Generatrs declaratin frm a generatr utside Great Britain evidence must be held by the supplier shwing that the electricity referred in the generatrs declaratin was supplied in Great Britain. In this case, this generatr declaratin must nt be used as evidence f fuel mix in a cuntry utside Great Britain. RE-GO frm ther Member Cuntries in additin t the RE-GOs suppliers must hld evidence that the electricity referred t in the RE-GO was supplied in Great Britain. The RE-GO used in this case must nt ne used as evidence f fuel mix by a supplier in anther Member State. Figures frm an electricity exchange r an undertaking utside the Cmmunity suppliers may use this figures if the figures clearly identify the prductin frm a particular energy surce. 4 Guidelines fr fuel mix disclsure by suppliers in Great Britain, December 2005, extracted at: 4/15

5 Summary f findings fr Great Britain If a supplier f electricity des nt hld evidence (generatr declaratins, a RE-GO r figures n an electricity exchange) t use as evidence f the energy surces fr the purpse f fuel mix disclsure, it shuld apprtin the amunt f electricity fr which evidence is nt held in accrdance with the residual fuel mix percentages in the DECC s Fuel Mix Disclsure Data Table. The cmpetent bdy that cmpiles and updated the Fuel Mix Disclsure Data Table is DECC. DECC is als respnsible fr publishing n its website this table by the 1 st f August each year. This Fuel Mix Disclsure Data Table includes: table fr residual fuel mix which is cmpiled by DECC using the best available infrmatin n the actual mix f electricity nt subject t generatrs declaratins r RE-GOs after cnsulting with majr suppliers; emissin rates t be used in calculating envirnmental impact f ttal electricity supplied by the licensee including carbn emissin rates fr each energy surce and the amunt f radiactive waste fr nuclear generatin lsses factr this factr is t be used t adjust the ttal amunt f electricity purchased fr supply t be used in calculatins by the licensee, accunting in this way fr lsses n the transmissin and distributin systems. Residual fuel mix calculatin methdlgy Fr the calculatin f the residual fuel mix fr GB the fllwing steps are taken 5 : DECC request all majr suppliers the fllwing infrmatin regarding the supply fr which RE- GOs r Generatrs Declaratins held: Cal (MWh) Natural Gas (MWh) Nuclear (MWh) Renewable (MWh) Other (MWh) Ttal fr which RE-GOs r Generatr Declaratins are held (MWh) Residual (supply fr which RE-GOs r Generatr Declaratins are nt Held (MWh) Ttal supplied (MWh) DECC then aggregates the data t give the ttal amunt f electricity supplied by fuel surce fr which RE-GOs f Generatr Declaratins are held: The ttal purchased fr supply (incl. lss factr) (MWh) is calculated by DECC fr each majr energy supplier and aggregated as a ttal fr all majr energy suppliers: Ttal nn-renewable supplied fr which RE-GOs r Generatr Declaratins held X Lss Factr + Ttal supplied by renewables fr which RE-GOs f Generatrs Declaratins held The ttal UK fuel mix is calculated n a financial year basis using DECC s published statistics. Data fr the UK is published n table 5.1 n DECC s quarterly publicatin: Energy Trends 6 5 DECC s UK Fuel Mix Methdlgy, extracted frm: pdf 6 DECC s Energy Trends available at: 5/15

6 Summary f findings fr Great Britain The UK data is then cnverted by DECC t cver Great Britain nly by deducting data frm Nrthern Ireland (Nrthern Ireland Fuel Mix data frm mnthly returns sent in by electricity cmpanies based in Nrthern Ireland) Imprted electricity is als allcated t a fuel type using fuel mix data fr France which is available frm Eurstat; The data are expressed as a percentage f ttal supply in Great Britain. Each percentage is multiplied by the Ttal purchased fr supply (incl. lss factr) (MWh) t give the ttal electricity supplied fr each fuel surce. The difference between this and the actual figures reprted by the majr electricity suppliers gives GB residual fuel mix, which is then expressed in percentage terms. Carbn dixide emissins The methdlgy fllwed by DECC fr the calculatin f the carbn dixide emissins is the fllwing 7 : The carbn dixide emissins by fuel type are btained by DECC frm the UK greenhuse gas inventry. The ttal emissins fr generatin by fuel are then divided by the electricity supplied fr each fuel type t give the CO2 emissins per kwh. The emissins are runded up t the nearest 10 t reflect the uncertainty arund the data. Emissin data are generally available 12 mnths in arrears (and n a calendar year basis) s are adjusted t take int accunt changes in electricity supply ver the last year. Data is als adjusted t cnvert emissin frm the UK t GB Acceptance f GOs In terms recgnising RE-GOs frm Ofgem may refuse t recgnise a GO issued by anther Member State where there are dubts abut the accuracy, reliability r veracity accrdingly t the supra-referred Regulatins. Suppliers can transfer GOs frm ther cuntries but may nly use a GO issued utside Great Britain (r n a generatr declaratin fr nn renewable energy) fr fuel mix disclsure purpses if it hlds evidence that the electricity referred t in the GO has been supplied in Great Britain and that it has nt been used utside f Great Britain as evidence f fuel mix. Thus in GB GO are recgnised frm ther EU Member States utside f EECS and utside f its Renewables and CHP Register. Guidance n the recgnitin prcess adpted in GB is prvided n Chapter 7 f the Renewable Energy Guarantees f Origin Guidance fr generatrs, agents and suppliers 8. Ofgem publishes all recgnised GO n the Ofgem website, Guarantees f Origin fr Electricity frm Renewable Energy Surces and High- Efficient Cgeneratin Great Britain as bth RE-GO and CHP-GO legislatin and schemes in place. RE-GO scheme came int frce in Great Britain in Octber 2003 thrugh The Electricity (Guarantees f Origin f Electricity Prduced frm Renewable Energy S.I. 2003/2562) Regulatins This legislatin has been amended by The Electricity (Guarantees f Origin f Electricity Prduced frm Renewable Energy S.I 2010/2715) Regulatins Bth Regulatin 2003 and Regulatins 2010 implement Article 15 f the Directive 2009/28/EC f the Eurpean Parliament and the Cuncil f 23 April 2009 n the prmtin f the use f energy frm renewable surces CHP-GOs scheme came int frce in February 2007 thrugh the Guarantees f Origin f Electricity Prduced frm High-efficiency Cgeneratin 2007 (S.I.2007/292). These regulatins implement Article 5 7 DECC s UK Fuel Mix Methdlgy, extracted frm: pdf 8 Ofgem Website, Renewable Energy Guarantees f Origin Guidance fr generatrs, agents and suppliers Dcument, 6/15

7 Summary f findings fr Great Britain (article fr the issuance f guarantees f rigin f electricity frm high-efficiency cgeneratin) f Directive 2004/8/EC f the Eurpean Parliament and f the Cuncil n the prmtin f cgeneratin based n a useful heat demand in the internal energy market. Renewable electricity prduced in Great Britain can receive bth RE-GO (in electrnic frm) and CHP- GO (paper frm) RES-GO System As referred, The Electricity Regulatins 2003 (S.I. 2003/2562) with the amendments frm Regulatins 2010 (S.I 2010/2715) transpse article 15 f the Renewables Directive, in reference t RE-GOs. These regulatins appint Ofgem (Gas and Electricity Markets Authrity) as the cmpetent bdy t issue, register, transfer, revke and cancel GOs fr electricity frm renewable energy surces. Under this scheme a RE-GO: Is issued by Ofgem t certify that the electricity in respect t which it was issued was prduced frm eligible renewable energy surces; Is as an electrnic dcument which has the sle functin f prviding prf t a final custmer/ptential cstumer that a given share r quantity f energy was prduced frm renewable surces; Is issued t accredited generating statins lcated in Great Britain and Nrthern Ireland; Is issued in respnse t a request frm a prducer f electricity frm renewable energy surces; Is issued fr each megawatt hur (MWh) f eligible renewable utput generated 9 ; Has a unique number (the guarantee sequence number ) which is allcated t each RE-GO sequentially in ascending numerical rder; Has a 16-mnth lifetime. Schedule I f Regulatin 2010 state the Infrmatin t be prvided in a request fr a RE-GO. The primary use f RE-GOs in Great Britain is fr Fuel Mix Disclsure. As already referred abve, Fuel Mix Disclsure requires licensed electricity suppliers t disclse t their cnsumers and ptential cstumers, the mix f fuels (cal, gas, nuclear, renewable and ther) used t generate electricity supplied annually. Ofgem is respnsible fr establishing and maintaining the electrnic register and is respnsible fr publishing that infrmatin n its website r by such means as it cnsiders apprpriate. Schedule 2 f Regulatin 2010 describes the infrmatin cntained n the electrnic register. Mrever the Regulatins state that Ofgem: Shall revke a RE-GO where: It is satisfied that the infrmatin prvided fr the issuing f the RE-GO is incrrect r that the RE-GO was issued n the basis f any fraudulent behaviur, statement r undertaking; It is satisfied that the RE-GO shuld nt have been issued (it inaccurate r was issued t the wrng persn) Shall cancel a RE-GO where: A RE-GO is issued in respect f electricity generated during a perid f ne mnth, the RE-GO shuld be cancelled nt mre than 16 mnths after the end f that mnth; r when a GO is issued fr mre than ne mnth, the RE-GO shall be cancelled nt mre than 16 mnths after the end f the first mnth which the electricity t which it related was generated; 9 This was ne f the changes made by Regulatins 2010 t Regulatins 2003, and it was with effect frm 5th December Prir t 5 th December 2010 ne RE-GO was issued fr each kilwatt hur (kwh) f eligible renewable utput generated. 7/15

8 Summary f findings fr Great Britain RE-GOs cancelled r revked shall n lnger qualify as prf that the electricity fr which it relates was prduced frm renewable energy surces CHP-GO System The CHP-GO (called CHPGO in Great Britain) scheme came int frce in February 2007 thrugh the Guarantees f Origin f Electricity Prduced frm High-efficiency Cgeneratin 2007 (S.I.2007/292). Within this scheme the Secretary f State fr Envirnment, Fd and Rural Affairs (DEFRA) is the designated cmpetent bdy. DEFRA nminated CHPQA Administratr (AEA Technlgy) as the bdy fr the assessment f high efficient CHP electricity generatin fr the purpses f Guarantees f Origin. Under this scheme the ne CHP-GO is issued fr each unit (MWh) f electricity prduced that qualify as high efficient CHP and it is nly used fr disclsure t increase transparency and aid cnsumer chice between CHP electricity and that prduced by ther technique. At the mment there is n electrnic register fr CHP-GOs and these GOs are planned t be paper issued. The Regulatry Impact Assessment (RIA) cncluded that using a physical certificate, where it is the respnsibility f the prducer t stre and transfer the certificate as necessary, was the mst apprpriate ptin fr the UK. There is a risk that an apprpriate authrity cannt adequately track the CHP-GO certificate, hwever while the certificate has little mnetary value in the UK, RIA believes this risk wuld be small. The scheme, by being linked t the CHPQA assessment prgramme, will match the safeguards f fraud-resistance, accuracy and reliability that are prvided by the Cmmissin mdel. Thus the UK des nt plan t adpt the mdel develped by the Cmmissin and the Eurpean Assciatin f Issuing Bdies at this time. Hwever the CHP-GO scheme will be similar enugh t allw a transitin t this mdel (i.e. an electrnic registratin system) if required and the situatin will be kept under review. The CHP-GO has a minimum lifetime f 3 mnths and maximum lifetime f 12 mnths. The issuance f CHP-GOs is linked with the existing CHPQA assessment system. The assessment prcess invlves: (i) determining the quantity f CHP electricity, heat and energy inputs (fuel) in accrdance with Annexe II f the EU Cgeneratin Directive; and (ii) the calculatin f Primary Energy Savings (PES) t determine the quantity f high efficiency CDP electricity in accrdance with Annexe III f the EU Cgeneratin Directive. An peratr that wants t require a CHP-GO needs t apply t the CHPQA Administratr, as the nminated bdy fr assessing the applicatin. Fr that it shuld fllw the guidance ntes fr CHP-GO and the applicatins guidelines 10. In Great Britain the CHP GO includes infrmatin n: Lwer CV f fuel surce fr electricity; Use heat and electricity generated Dates and places f prductin Quantity f electricity frm high efficient CHP Primary Energy Savings (PES) based n harmnised efficiency reference values. Schedule 1 f the Statutry Instrument 2007 n.292 Energy Cnservatin specifies the infrmatin that a prducer needs t supply when requesting fr a CHP-GO and Schedule 2 f the same instrument the full infrmatin cntained in a CHP-GO. Fr applying t a CHP-GO, the prduced shall fill ut and sign the applicatin entitled Frm CHPGO Prvisin f Data fr the Assessment f High Efficiency CHP Pwer Generatin fr the purpse f Guarantee f Origin. Upn the receptin f this infrmatin, the CHPQA Administratr calculates the infrmatin required t issue the CHP-GO using as referred abve Annexes II and III methdlgy required by the Cgeneratin Directive. As the data prvided t the CHPQA will be the basis fr the calculating the infrmatin n the CHP-GO, this infrmatin shuld be demnstrably accurate and reliable. 10 DECC Website, Applicatin Guidelines fr CHP-GOs extracted at: 8/15

9 Summary f findings fr Great Britain At the mment the CHP-GO des nt carry any mnetary value and s it is nt envisined that any system t fine prducers that attempt t abuse the system is required. Hwever, in case thse CHP-GOs were btained n the basis f incrrect infrmatin, they can be revked. The Gvernment charges the request fr CHP-GO, which is nt mandatry and des nt imply public supprt. This charge aims at recvering csts and depends n the cmplexity f the scheme: it charges significantly less t small CHP prducers than t large cmplex CHP prducers. Where a CHP-GO has been requested, there may be additinal csts t the prducer assciated with the installatin f additinal metering (fuel, electricity and heat), as the definitin in the Directive f CHP electricity t be applied in the Guarantee f Origin, unlike the UK s CHPQA standard, des nt allw heat prduced by supplementary firing r in auxiliary bilers r electricity prduced by a cndensing turbine t be cunted (an thus additinal metering may be required). Hwever, the issuance f a CHP-GO is at the request f the prducer and any additinal csts will frm part f the cmmercial decisin t request fr this certificate. Within this scheme CHP-GO can be: Replaced: thrugh a request frm the CHP-GO hlder t the cmpetent bdy if the hlder believes that the CHP-GO us inaccurate); Transferred: when the CHP-GO hlder des nt perate the plant t which the CHP-GO has been issued fr); and/r Revked: if the cmpetent bdy decided that (i) the CHP-GO is inaccurate; r (ii) it is satisfied that the infrmatin prvided n the CHP-GO request in nt accurate; r (iii) it is therwise satisfied that the CHP-GO shuld nt have been issues). The Statutry Instrument 2007 Cgeneratin als makes prvisins fr the recgnitin f CHP-GOs: CHP-GOs issued by the cmpetent bdy shall be recgnised by public authrities (any Minister, Gvernment Department, public bdy r any descriptin r any persn hlding public ffice) as a prf f electricity prduced frm high-efficiency CHP; CHP-GOs issued utside Great Britain shall be recgnised prvided that it has nt been requested t refuse r withdraw such recgnitin by the authrity that has issued r supervised the issue f the CHP-GO and that there are n dubts abut the accuracy, reliability r veracity accrdingly t the supra-referred Regulatins. Up until this mment n CHP-GOs have been issued in Great Britain GO Statistics The fllwing table shws the GOs statistics The statistics are taken frm the Ofgem Renewables and CHP Register and infrmatin prvided fr the RM calculatin f 2013 disclsure perid. Table 3: GOs statistics Year Issued Cancelled (Redeemed + Retired) Revked Held ,445,002 40,360 97,471 23,307, ,730,189 5,009, ,020 11,559, ,410,586 6,952,046-16,458, ,986,102 9,041, , ,051,240 9,332, ,313 37,574,404 9/15

10 Summary f findings fr Great Britain 1.3 RES-E Supprt Schemes Renewables Obligatin The Renewables Obligatin (RO), intrduced in 2002 is UK s main financial mechanism by which the Gvernment encurages the deplyment f large-scale renewable electricity generatin. This mechanism prvided supprt fr 20 years, which balances the need t prvide investrs with lng-term certainty with the need t keep csts t cnsumers t a minimum, and requires licensed electricity suppliers in the UK t surce a specific and annually increasing percentage f their sales frm eligible renewable surces r they pay a penalty. Since it was intrduced it has been very successful in supprting the deplyment f renewables generatin frm 3.1GW in 2002 t 8GW in 2009 and mre than tripling the level f renewable electricity in the UK frm 1.8% in 2002 t 6.6% in It is currently wrth arund 1.3 billin a year in supprt t the renewable electricity industry 11. This scheme was intrduced by the Department f Trade and Industry (nw the Department f Energy and Climate Change) and its administrated by Ofgem wh issue Renewables Obligatin Certificates (ROCs) t renewable electricity generatrs fr every megawatt hur (MWh) f eligible renewable electricity they generate. The issue f a ROC is ptinal and is available fr each eligible MWh f generatin runded up t the nearest MWh. The RO is a clsed UK-nly system. The bligatin level is set each year by the Department f Energy and Climate Change (DECC) using a fixed target r a headrm calculatin. In the headrm calculatin was applied t take accunt f the predictin f a large amunt f new renewable generatin cming nline. The Obligatin level fr suppliers t custmers in England and Wales fr the perid frm 1 April 2015 t 31 March 2016 will be 0.290ROCs/MWh 12. Suppliers can meet their bligatin by either presenting Renewable Obligatin Certificates (ROCs); paying a buyut price (GBP per MWh fr 2014/2015 and GBP per MWh in 2015/ rising each year with inflatin); r a cmbinatin f the tw. ROCs are issued t generatrs fr every generated MWh f eligible renewable electricity. These ROCs can then be sld t suppliers r traders t receive a premium n tp f the whlesale price f their electricity. ROCs can be sld with r withut the electricity they represent. At the end f an bligatin perid the mney in the buyut fund is recycled t thse suppliers wh presented ROCs n a pr rata basis. Suppliers that d nt present ROCs pay int the buy-ut fund at the buy-ut price, but d nt receive any prtin f the recycled fund. The scheme has been subjected t varius amendments ver the years, the mst significant being in April 2009 thrugh the intrductin f banding where different levels f financial supprt was awarded t generatrs based n their generatin technlgy. Further changes in April 2010 included extending the scheme, frm 31 March 2027, in England and Wales and Sctland until 31 March Several legislative amendments were implemented during the and bligatin perids. These included the transfer f supprt fr phtvltaic (PV), hydr and wind micr generatin (with capacity less than 50kW) in Great Britain (GB) frm the RO t the new Feed-in Tariff (FIT) scheme, with effect frm 1 April 2010, and the intrductin f sustainability requirements fr biliquids in April The RO will clse t new generatin n 31 March Generatin which is accredited under the RO will cntinue t receive its full lifetime f supprt in the vintaged scheme after The scheme will clse in Feed-in-Tariff The Feed-in-Tariff (FIT) scheme was intrduced n 1 st April 2010, thugh the Energy Act 2008, t encurage the deplyment f additinal small-scale (up t 5 MW) lw-carbn electricity generatin, particularly by rganisatins, businesses, cmmunities and individuals that have nt traditinally engaged 11 DECC Website: 12 Ibid 13 Ofgem Infrmatin Nte: 10/15

11 Summary f findings fr Great Britain in the electricity market. It is expected that by 2020 the scheme will supprt ver 750,000 small-scale lw carbn electricity installatins and will have saved 7 millin tnnes f carbn dixide. This scheme, intrduced by DECC and administrated by Ofgem, is vluntary fr generatrs and small suppliers (<50,000 dmestic custmers). Fr large electricity suppliers wh will make the payments directly t generatrs it is an bligatry scheme. This is then recvered equitably acrss all electricity suppliers This scheme requires Licensed Electricity Suppliers (FIT Licensees) t pay a generatin tariff t smallscale lw-carbn generatrs fr electricity generated. An exprt tariff is als payable where electricity is exprted t the natinal grid. The FIT prvides supprt fr a set perid f time (10, 20 r 25 years depending n technlgy) at a determined level f supprt dependent n the technlgy installed. This scheme replaces the Lw Carbn Buildings Prgramme (LCBP) grants, which have since been discntinued. Installatins using slar phtvltaic (PV), wind, hydr, anaerbic digestin (AD) technlgies up t 5MW and fssil fuel derived Cmbined Heat and Pwer (CHP) up t 2kW (up t a maximum f 30,000 eligible installatins) can receive FIT payments, prviding all eligibility requirements are met. This scheme replaces the Renewables Obligatin (RO) as the main mechanism f supprt fr PV, wind and hydr installatins with a declared net capacity (DNC) f 50kW r less ('micr installatins'). The scheme als prvides eligible small-scale generatrs with a capacity ver 50kW t 5MW ('small installatins') the neff chice f applying under the FIT r the RO. In rder t be eligible fr the FIT, custmers ( Generatrs ) must ensure that the Prduct they are installing is certified by the Micrgeneratin Certificatin Scheme (MCS), and that the Installer is als MCS certified. Since it was intrduced the FIT scheme has undergne a number f changes, being the latest ne the 2011 Amendment Order, which makes a series f mdificatins t the Feed-In Tariffs (Specified Maximum Capacity and Functins Order 2010, intended t ensure this plicy intent is fully reflected in the peratin f the FITs scheme, particularly in light f the additinal clarificatin prvided fllwing the Eurpean Cmmissin s cnsideratin f the FITs scheme in relatin t state aid (decisin N94/2010). Levy Exemptin Certificates The Climate Change Levy (CCL) was intrduced n 1 st April 2001 by the Gvernment under the Finance Act It is a charge n nn-dmestic supply f electricity in the UK. Electricity is currently (with effect frm 1 st April 2012) subject t a levy at a rate f GBP 5.09/MWh. The Renewable Levy Exemptin Certificates (Renewable LECs) are electrnic certificates issued by Ofgem, which issue these certificates mnthly t accredited generating statins fr each Megawatt hur (MWh) f renewable surce electricity generated. In the case f NFFO/SRO (Nn Fssil Fuel Obligatin and the Scttish Renewables Obligatin) generating statins Ofgem issues LECs directly t the electricity suppliers entitled t receive them. LECs identify renewable surce electricity prduced by accredited renewable generating statins As LECs are nly issued t accredited generating status, befre they can receive LECs, the generating statin must apply fr accredited status. Renewables LECs are part f the evidence required by HM Revenue & Custms t demnstrate the amunt f renewable surce electricity supplied t nn-dmestic custmers in Great Britain. They are used by electricity suppliers t claim the CCL Exemptin n nn-dmestic supply. Suppliers allcate Renewables LECs t a supply pursuant t a renewable surce cntract. Ofgem Renewables and CHP Register is used t manage the renewable and CHP schemes that Ofgem administers n behalf f gvernment, namely the Renewables Obligatin (RO), the Climate Change Levy (CCL) and the Renewable Electricity Guarantees f Origin (REGOs). Details n the LECs can be fund at Ofgem website. Renewable Heat Incentive The Renewable Heat Incentive (RHI) encurages individuals, cmmunities and thers wh are nt prfessinals in the energy business, t play their part in bringing frward renewable energy, by prviding a financial incentive t switch frm using fssil fuels fr electricity and heat, t renewable technlgies 11/15

12 Summary f findings fr Great Britain and surces. The Energy Act 2008 prvides the statutry basis fr a Renewable Heat Incentive scheme t be intrduced acrss England, Wales and Sctland. The first phase f the scheme came int frce in 2011 This scheme is similar t the FIT scheme. Hwever there are sme imprtant differences: will be paid fr by the Treasury nt by energy users. there is n Natinal Grid fr Heat and s imprting and exprting heat is nt relevant. will be intrduced in phases, with residential schemes nt eligible until Phase 2. The renewable energy technlgies eligible fr the scheme are: heat pumps (excluding air surce heat pumps), slar thermal (belw 200kW), bimass bilers (belw 200kW), CHP and technlgies such as bigas, bimethane and biliquids. The incentive is technlgy dependent and varies accrding t the scale f the system installed. Payments made as part f the RHI Scheme will be claimed by, and paid t, the Owner f the equipment. Fr small and medium sized installatins, bth the Prduct (equipment) and Installer will need t be certified under the Micrgeneratin Certificatin Scheme (MCS), in rder t ensure quality assurance and cnsumer prtectin. Payments will be paid ver a number f years; annually fr installatins belw 45 kw and quarterly fr thse abve this level. Payments are calculated based n the annual amunt f heat utput, expressed in kilwatt hurs (kwh): fr Small and Medium Installatins, the amunt f heat generated by the equipment will be estimated (r Deemed ). This will allw the beneficiary f the Incentive t receive a set amunt based n the deemed utput, while discuraging any excess prductin r energy waste. fr Large installatins and prcess-heating, the heat utput will be metered, and the ttal annual supprt calculated frm the actual energy generated, multiplied by the tariff level. This Scheme is administered by Ofgem, including making Incentive payments t recipients and taking respnsibility fr auditing and enfrcing the Scheme. 2 Prpsals fr Imprvement f the Tracking System The fllwing prpsals are made in accrdance with the RE-DISS Best Practice Recmmendatins (BPR v2.2 f August 2014), which have been agreed by the Participating Dmains f the RE-DISS Prject. There are several tracking systems in place in GB. These tracking systems are clearly regulated. The fllwing are recmmendatins t align the tracking systems with RE-DISS BPR: BPR [16]: In the medium t lnger term, GO shuld be the nly tracking certificate used. Any ther tracking systems f a similar purpse and functin as GO shuld be clsely crdinated with GO t avid duble selling and eventually cnverted t GO. In GB, Gvernment intrduced Levy Exemptin Certificates (LECs) which are used by suppliers t btain a discunt t the Climate Change Levy n behalf f nn-dmestic custmers. Further, Renewable Obligatin Certificates (ROCs) are in use t subsidise renewable plants. Althugh these certificates are assciated with renewable energy, they are nt intended t be tracking certificates. BPR [19]: GB shuld clarify whether and under which cnditins the use f GO by end cnsumers is allwed. Such GO use shuld nt be based n ex-dmain cancellatins perfrmed in ther cuntries. If cnsumers are allwed t use GO themselves, a crrectin shuld be implemented in the disclsure scheme which cmpensates fr any duble disclsure f energy cnsumed. Ofgem has systems in place that allw cnsumers t use GO. Hwever, the Gvernment's carbn reprting guidelines d nt currently cater fr the purchase f GO by cnsumers t claim lwer carbn emissins. Therefre, whilst pssible in thery, that des nt happen in practise. 12/15

13 Summary f findings fr Great Britain 2.1 Prpsals regarding Disclsure In terms f disclsure, the GO system in place fr GB is nt fully in line with the RE-DISS BPR. The fllwing are recmmendatins t align the existent disclsure system with RE-DISS BPR: BPR [3a]: Lifetime f GO shuld be limited t 12 mnths after the end f the prductin perid, instead f the 16 mnths cnsidered in the current system. After the 12 mnths GOs that have nt been cancelled yet shuld expire and be cllected in the Residual Mix BPR [5b]: Deadline fr cancellatin f GO fr the purpses f Disclsure f year X shuld be set t 31 March f year X+1. Deadline t supply the infrmatin in GB is the 1 st f July f X+1. BPR [33]: Electricity disclsure shuld be based n calendar years. At the mment in GB disclsure is based n financial years. BPR [34, 35] In terms f timing fr disclsure: The deadline fr cancelling GO fr purpses f disclsure f a given year shuld be the 31 st f March f the fllwing year (instead f the 1 st f June); The timing fr the calculatin f Residual Mixes shuld be crdinated acrss Eurpe: By 30 April X+1 GB shuld have determined its preliminary dmestic residual mix and whether they have a surplus r deficit f attributes. By 15 May X+1, the Eurpean Attribute Mix shuld be determined and shuld be used by DECC fr the calculatin f the residual mix (instead f the GB residual mix). By 31 May X+1, the final dmain residual mixes shuld be published. As f 1 July X+1 the disclsure figures relating t year X shuld be published by DECC. BPR [26a]: The calculatin f the Residual Mix shuld fllw the methdlgy develped in the RE-DISS prject. BPR [27]: Fr purpses f this crss-brder adjustment, GB shuld use data prvided by RE- DISS. At the mment, althugh the GB participate in the cllectin f data fr the RE-DISS Eurpean RM calculatin, fr crss-brder adjustment GB make use f the GB residual mix fr the excess f lack f attributes. 2.2 Prpsals regarding RE-GO and CHP-GO The RE-GO and CHP-GO system in place fr GB is nt fully in line with the RE-DISS BPR recmmendatins. T imprve the RE-GO system in place fr GB, the fllwing RE-DISS recmmendatins shuld be fllwed: BPR [1a]: Metered prductin perids fr issuing GOs shuld nt be lnger than a calendar mnth. At the mment it depends, metering perids can g ver the disclsure perid. GO in GB are issued fr a calendar mnth r annual perid (April - March). BPR [3a]: The GOs fr GB shuld nly have a 12 mnth lifetime instead f the 16 mnths lifetime; BPR [4]: An extensin t this lifetime can be granted if a GO culd nt be issued fr mre than [six] mnths after the end f the prductin perid fr reasns which were nt fully under the cntrl f the plant peratr. In this case, the lifetime f the GO might be extended t [six] mnths after issuing the GO. BPR [7, 7a, 7b]: The RE-GO system shuld be based n EECS perated by AIB. GB At the mment GB is nt an EECS members. The implementatin f a GO system based n EECS will help harmnise the system fr Eurpean GO transfers, especially between EECS members. GB shuld use the AIB Hub fr internatinal transfers. 13/15

14 Summary f findings fr Great Britain BPR [10.1]: GO shuld generally be issued nly fr the net generatin f a pwer plant, i.e. grss generatin minus the cnsumptin f all auxiliaries related t the prcess f pwer prductin. Fr hydr pwer plants invlving pumped strage this means that GO shuld be issued nly fr the net generatin which can be attributed t natural inflw int the reservir. At the mment in GB GO are issued fr grss renewable energy generatin. BPR [11a]: t extend the system f GO t ther frms f electricity generatin. BPR [11b]: GOs shuld be issued fr all electricity prductin, unless an RTS applies fr that prductin, e.g. fr the disclsure f supprted electricity. BPR [11c]: Cmpetent bdies shuld cnsider t make the use f GOs mandatry fr all electricity supplied t final cnsumers. BPR [12.2]: Technical changes t plants need t be registered as sn as is reasnably practicable. BPR [13.5]: An exprted GO shuld be marked as remved frm the exprting registry. BPR [13.7]: Registries shuld be audited n a regular basis. BPR [15b] Althugh in GB nly ne GO is issued per unit f electricity this GO shuld cmbine the functinalities f a RES-GO and a CHP-GO. 2.3 Prpsals regarding Acceptance f GO Regarding acceptance f GO the fllwing shuld be cnsidered: Within the rules set by the respective Directives, GB shuld cnsider establishing their criteria fr the acceptance f imprted GO fr purpses f disclsure: These criteria shuld address imprts at least frm all EU member states, ther members f the Eurpean Ecnmic Area (EEA) and Switzerland. The parties t the Energy Cmmunity Treaty shuld be cnsidered as well, as sn as GO imprts frm these cuntries becme relevant. The criteria shuld specify the electrnic interfaces, specifying data frmat and cntents f GO t be imprted, which the respective cuntry accepts fr imprts f GO (such as the EECS Hub and any ther interfaces accepted). Cnditins fr the recgnitin f GO frm ther cuntries shuld be that they were issued based n Art. 15 f Directive 2009/28/EC r cmpatible natinal legislatin, and that they meet the explicit requirements set in Art. 15, e.g. regarding the infrmatin cntent f the GO. The recgnitin f GO frm ther cuntries shuld be rejected in case that these cuntries have nt implemented an electricity disclsure system. The recgnitin f GO frm ther cuntries shuld be rejected in case that the cunty which has issued the GO r the cuntry which is exprting the GO have nt implemented adequate measures which effectively avid duble cunting f the attributes represented by the GO. Such adequate measures shuld ensure the exclusivity f the GO fr representing the attributes f the underlying electricity generatin, implement clear rules fr disclsure, establish a prper Residual Mix r equivalent measures, and ensure their actual use. Furthermre, the adequate measures shuld ensure that attributes f exprted GO are subtracted frm the Residual Mix f the exprting cuntry and cannt be used fr disclsure at any time in the issuing r the exprting cuntry by explicit mechanisms, unless the GO is re-imprted and cancelled there. Regarding acceptance f GO the fllwing BPR shuld be implemented: BPR [20a]: Great Britain shuld chse ne f the tw fllwing ptins and apply it cnsistently fr all freign GO: Rejectin f GOs nly relates t the cancellatin f GOs and subsequent use fr disclsure purpses in the respective cuntry and shuld nt restrict the transfers f GOs between the registry f the cnsidered cuntry and the registries f their cuntries. This means that the decisin abut the recgnitin f a GO shuld nt hinder its imprt int the cnsidered cuntry. 14/15

15 Summary f findings fr Great Britain Rejectin f GOs implies blcking their imprt t the natinal registry. BPR [20b]: The chice f ne r the ther ptin shuld be transparent fr all market parties and clearly cmmunicated. BPR [21] Within the rules set by the respective Directives, Great Britain shuld cnsider their criteria fr the acceptance f imprted GOs fr purpses f disclsure. The recgnitin f GOs frm ther cuntries shuld be rejected if these cuntries have nt implemented an electricity disclsure system. The recgnitin f GOs frm ther cuntries shuld be rejected if the cuntry which has issued the GOs r the cuntry which is exprting the GOs have nt implemented apprpriate measures which effectively avid duble cunting f the attributes represented by the GOs. Such apprpriate measures shuld ensure the exclusivity f the GOs fr representing the attributes f the underlying electricity generatin, implement clear rules fr disclsure, establish a prper Residual Mix r equivalent measures, and ensure their actual use. Furthermre, the apprpriate measures shuld ensure that attributes f exprted GOs are subtracted frm the Residual Mix f the exprting cuntry and cannt be used fr disclsure at any time in the issuing r the exprting cuntry by explicit mechanisms, unless the GOs are re-imprted and cancelled there. 2.4 Further prpsals regarding Disclsure BPR [38]: All electricity prducts ffered by suppliers with claims regarding the rigin f the energy (e.g. green r lw-carbn pwer) shuld be based exclusively n cancelled GO. N ther tracking systems shuld be allwed, with the exceptin f mechanisms defined by law, e.g. a prrata al- lcatin f generatin attributes t all cnsumers which is related t a supprt scheme. BPR [44]: Great Britain suppliers shuld apply the steps defined in the RE-DISS BPR in rder t determine their disclsure figures. 2.5 Matrix f disclsure related prblems and cuntry-specific prpsals Prblem Cuntry-specific prpsal Pssible duble cunting in different explicit tracking instruments BPRs: [7], [7a], [7b], [10.1], [11a], [13.5], [13.7], [12.2], [16], [21], [38] Duble cunting f attributes in implicit tracking mechanisms BPRs: [5b], [11a], [13.5], [21], [26a], [27], [44] Duble cunting within individual supplier's prtfli BPRs: Lss f disclsure infrmatin BPRs: [11a], [15b], [19] Intransparency fr cnsumers BPRs: [11a], [11b], [11c], [12.2], [13.5] Leakage f attributes and/r arbitrage BPRs: [1a], [3a], [5b], [19], [33], [34], [35] Unintended market barriers BPR: [4], [7], [7a], [7b], [11b], [11c], [20a], [20b], [21] Disclaimer: The sle respnsibility fr the cntent f this dcument lies with the authrs. It des nt necessarily reflect the pinin f the Eurpean Unin. Neither the EACI nr the Eurpean Cmmissin is respnsible fr any use that may be made f the infrmatin cntained therein. 15/15