renewable-energy-guarantees-of-origin-eu

Renewable Energy Guarantees of Origin in EU Member States

Regulators, OFGEM / / By

Recognising GoOs of EU member states 

 

All countries that belong to the UK must have a Guarantees of Origin (GoOs) scheme. In the UK, this scheme is known as Renewable Energy Guarantees of Origin (REGO).  

 

Ofgem is required by law to recognise other GoOs of EU member states. Here we explain in more detail how recognising GoOs of EU member states works.  

 

Legislation 

 

Under Regulation 9, Ofgem and any other competent authority are required to recognise the REGOs issued for renewable electricity generated in GB or NI, as well as GoOs issued in any other EU Member State for electricity and heating or cooling. 

 

Ofgem can refuse to give recognition in the following circumstances: 

  • Ogem has been requested not to recognise the GoO by the issuing body in the EU Member State where the GoO was obtained 
  • Ofgem believes that there is a reason to doubt the accuracy, reliability or veracity of the GoO 

 

In a situation where Ofgem refuses to recognise a GoO issued by another EU Member State or if it makes a decision to withdraw the recognition, it must notify the Commission of the European Community. If the Commission does not agree with Ofgem’s decision, Ofgem must recognise the GoO.  

 

It is important to note that Ofgem does not have the authority to recognise GoOs issued by countries that are non-EU member states. This means that it can only recognise GoOs issued by: Austria, Belgium, Bulgaria, Croatia, the Republic of Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. 

 

Before Ofgem can recognise a GoO, it needs to make sure that it has been properly issued. For this reason, Ofgem might sometimes have to make contact with the issuing body before it can grant the recognition.  

 

How to request GoO recognition by Ofgem 

 

Those who want to request the recognition of GoOs issued by an EU Member State should send an email to renewable@ofgem.gov.uk. The subject of the email should say ‘Request for recognition of EU GoOs.’  

 

And, as Ofgem explains, the email should contain the following details: 

  • ‘The name of the competent body (and contact details) that issued the GoOs; details of the current registered holder; 
  • The GoO certificates, specifying the following: 
  • The generating station name
  • The commissioning date of the generating station (if the GoO was issued under the 2009 Directive)
  • The capacity of the generating station 
  • The country of generation 
  • Details about the investment support that the generating station and unit of energy has received (if the GoO was issued under the 2009 Directive). 
  • Whether the GoO is for electricity or heating/cooling 
  • The energy source from which the electricity or heating/cooling was generated 
  • The period of generation 
  • The start and end GoO certificate number 
  • The total number of GoOs in the certificate range 
  • The total number of GoOs to be recognised (if different from the above) and the date, country of issue and unique identification number of the generating station
  • The status of the GoOs at the time of the request for recognition 

 

If some of the information is missing, Ofgem might not have enough information to decide whether it can grant the recognition.  

 

If Ofgem agrees to recognise a GoO, it will confirm the decision in writing to the person who makes the request. There is no Register where recognised GoOs can be found but Ofgem publishes a list of all EU GoOs that it recognises on its official website. The list includes the details of the GoO and the date the GoO has been recognised. GoOs for electricity and heating/cooling are published separately for clarity. 

How are REGOs used in GB and NI 

In Great Britain and Northern Ireland, REGOs are used primarily to prove Fuel Mix Disclosure (FMD). However, they can also be used for  Green Supply Guidelines and Greenhouse Gas Emission Reporting. Here we talk in detail about the different applications of REGOs.  

 

Fuel Mix Disclosure explained 

 

Under the Electricity (Fuel Mix Disclosure) Regulations 2005, No.391, all electricity suppliers in the UK must disclose information about the mix of fuels (coal, gas, nuclear, renewable and other) they use to generate the electricity they then supply to energy consumers.  

 

A disclosure period runs from 1 April to 31 March but suppliers have until 1 July following the disclosure period to provide proof confirming the information in their fuel mix. Then, by 1 October, suppliers must make the fuel mix disclosure available to customers.  

 

After suppliers publish their fuel mix disclosures, Ofgem compiles a report, confirms their accuracy, and publishes insights on its official website.  

 

If suppliers are using non-EU imports/electricity exchange purchases, they must have access to data showing the  amount of electricity produced from each particular energy source. 

 

In Northern Ireland, the disclosure period is different as it runs from 1 January to 31 December. Licensed electricity suppliers must provide evidence regarding the sources of electricity supplied during the disclosure period by 1 July of the following year. 

 

REGOs and Green Supply Guidelines 

 

In February 2009, Ofgem published the ‘Green Supply Guidelines’ that explained what green electricity tariffs should offer and how they should be advertised by suppliers. A year later, in 2010, the Green Energy Supply Certification Scheme was introduced to certify tariffs that meet the requirements of the Green Supply Guidelines. 

 

An important requirement that suppliers must meet to be able to be certified by this independent panel is evidence of supply. REGOs can, therefore, be used to prove that suppliers’ generation portfolio is green. 

 

REGOs and Greenhouse Gas Emissions Reporting 

 

In  2009, Ofgem published ‘Guidance on how to measure and report greenhouse gas emissions’ and REGOs were used in it. The purpose of the document was to support UK organisations with reducing their impact on the environment and lowering their contribution to climate change.  

 

The Guidance explains how organisations can measure and report greenhouse gas (GHG) emissions and how they can set goals that help them reduce their emissions. 

 

Recommendations discussed in the document were targeting businesses, as well as public and voluntary sector organisations. Thanks to the Guidance, relevant actors can also find out how they can report electricity generation from renewable sources backed by REGOs.  

 

Audits and REGOs 

 

Ofgem has the power to audit generating stations that request REGOs. Here we explain how Ofgem carries out technical audits, including audits for stations that use biomass and waste, or pumped storage systems. 

 

If Ofgem needs access to a generating station or it needs to request certain information from the operator of the station, it has the right to do it through Regulation 5. In a situation where the information request or access are refused, Ofgem can refuse to issue REGOs.  

 

How does Ofgem carry out technical audits? 

 

Ofgem does technical audits of generating stations on an ongoing basis. The purpose of these audits is to prevent fraud and ensure that the information they submit is accurate. In addition to that, Ofgem makes sure that the operations of generation stations keep making them eligible to request REGOs.  

 

Ofgem expects that generation stations provide auditors with all the necessary assistance such as granting them access to the station and allowing them to take photographs or make notes. Generation stations should also facilitate the auditors  inspecting or copying records. 

 

During a technical audit, auditors review metering arrangements and the information that is typically submitted when requesting REGOs. They also review the total quantity of electricity produced and the quantity of renewable electricity produced by the station. This data is essential for REGOs requests. 

 

After the audit is completed, Ofgem writes to the operator to notify them about any issues that the auditors found. The operator must address and fix these problems. If they fail to do so, Ofgem can suspend issuing them with REGOs.  

 

Also, if the audit shows that the station does not meet the requirements to receive REGOs, Ofgem can withdraw its accreditation and revoke any REGOs that the station has received previously. Similarly, if as a result of the audit Ofgem finds out that REGOs had been issued incorrectly, it has the power to revoke all or some of them.  

 

Generation stations that use pumped storage systems should prepare information on the total quantity of electricity produced as a result of filling the storage system. They also should prepare evidence confirming that this amount of electricity did not make up a part of the electricity that REGO was requested for.