Japan Society of Public Utility Economics
In co-operation with Denki-Shimbun
13th September 2021, 08:00-09:30 BST

The EnergyTag Initiative
The Real-Time Energy Certificate

Accelerating the shift to renewables throughreal-time electricity tracking

September
2020
PhilipMoody(Chair, EnergyTag Initiative, and Secretary General of AIB 2002-2020)

Overview of renewable energy certificates (RECs) in EU and related countries

European Union

All have
Guaranteesof Origin

European Free Trade Area
Energy Community

FIISNOSEEE

RULVLTDKIE

Supportcertificates

UKNLBYPODEBEFRPTCZATCHSKMDHURO

SI HR
B&H RSITESUAME XKALGE

BU
MKTKGRCYHistory of Energy Attribute Certificates (EACs) – the early days
1990

Swap contracts between electricity producers and suppliers inadministrations with different eligibilities for public support

1994-95

Concept of commoditising “greenness” appears

1997

USA Renewable Portfolio Standards, to encourage renewable energy
Dutch Green Certificate System, only in Netherlands

1999-2002 RECS Initiative: international trade in EACs across western Europe
Formation of Association of Issuing Bodies to design & manage the system
Australian renewable energy certificate system
UK Climate Change Levy Exemption certificates (LECs)
UK Renewable Obligation Certificates (ROCs)… and others

The principles of Energy Attribute Certificates (EACs)

EAC (Guarantee ofOrigin, in Europe)
Issuing Body€

Guarantees of Origin
Concept of GO

What is an EECS-GO?
What are GOs used for?

Basic Commitment- concept

Birth of GOs
RES Directive
2001/77/EC (Art. 5)

Principles & Rules of Operation

Electricity
Directives
2009/28/EC
Disclosure IEM - RES:
Define GO and its data
- Disclosure: 2009/72/EC
Directive
2003/54/EC (Art. 3)- CHP: 2003/54/EC

GOs are for Disclosure to consumers

European Energy Certificate System Rules

PRO à EECS
Adapt to latest
Directives

CEN standard agreed

Directives- RES: 2018/2001/EC- Internal Energy Market:
2019/944/EC

CEN std & GOsystem revision
2002

2006

2010

2014

2018

Guarantees of origin

New version will:üFacilitate multi-energy carrierüSupport REDIIüIntegrate improvements from practice

3. Efficient andreliable GO system –voluntary standard
2. Reliable GO system –mandatory standard
1. GOs are fordisclosure – legislation

EnergyTag copyright © 2021. We reserve the rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without
express authority is strictly forbidden. The EnergyTag Initiative Ltd is a non-profit association.

EECS
CEN/CENELEC
standardEN16325

REDII

Size of the market for electricity GOs

Price of a GO varies with energy source & year
- Currently €0.40-0.80- Peaked in 2018 at €2.10

AIB© copyright 1998-2021 - Facts & Statistics

Annual EECS transactions by transaction date (TWh)
1000
900
800
700
2016

600

2017
2018

500

2019
400

2020
2021

300
200
1000Issue

Internal Transfer

ImportExport

EnergyTag copyright © 2021. We reserve the rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without
express authority is strictly forbidden. The EnergyTag Initiative Ltd is a non-profit association.

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Need for change• Should match production & consumption in real time, not averageso Inappropriate to match average production with summer consumption• Matching period should be an hour or lesso Inappropriate to match night-time production with afternoon consumption• Need to support storage & demand flexibility• Calculated carbon emissions should relate to actual plants at specific season & time of dayo Current practice of deriving emissions from fuel source does not account for:
Ø The efficiency of the generator producing electricity at that timeØ Whether or not that plant was operating at the time of consumption• Restricting EACs to renewables, and excluding fossil and nuclear fuel, makes it hard tocalculate the residual mix (supply which is not supported by EACs)

EnergyTag objective
A 24/7 hourly accounting period for EACs lets consumers understand exactly
where their energy comes from, and what their carbon emissions are, at any
given moment:• Builds trust by linking production to consumption in ‘real-time’• Supports storage and flexibility by providing a new price signal• Enables accurate carbon accounting by tracking hourly carbon data
• Supports new market models such as nodal pricing
Our goal is to establish a common, tradable instrumentthat provides traceability across markets for power, flexibility and carbon.

Whitepaper Launch:●

Whitepaper published 19th May●

More than 40 press mentions●

110 organisations publicly mentioned in the report●More than 100 new organisations have signed up since thenCurrent activities:
1.

Develop more detailed
guidelines for hourly
certificates

2. Oversee progress on demonstrator
projects:- Progress reports on six projects live by end
2021- Add 4 new projects

3. Continue to build
awareness, and gain
participants in hourly
certificate systems

Hot Topics under discussion

SectionFundamentals

Issue

Issue

Basic purpose of Granular Certificates

Systems architecture

Granular Certificate System Boundaries

Consumption matching (=cancellation “timebox”)

Relationship between transfer of GCs and physical energy transmission

Fraud detection and prevention

Link/integration with an existing energy attribute certificate (EAC)
systemMajor Issues

Section

OtherIssues

Market design
Linkage with support systems

Transition from existing to proposed GC systems

Sector couplingRole allocation
Attributes on a granular certificate (GC)Eligibility of energy / onsite demand/production (also known as “selfconsumption”)

Size of GC - fractions etc.

Definition of auxiliaries

Methodology for determining greenhouse gas (GHG) emissions

Residual mix calculation

Time zones
Metering data
Prevention of double counting
StoragePeriod of validity of a granular certificate

For more information or to express interest see:www.energytag.org
Also see:www.aib-net.org