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mostly in those Member States that have a clear vision about
the use of GoOs. Another Member States which only
wanted to implement provisions of the Directive [1] in the
easiest was without thinking what they will be used for.
The Association AIB has also been active in the attempts
to transfer the experiences gained in operation of RECS
system into the GoO system. These efforts have led to
establishing of EECS (European Energy Certification
System) system. This system enables issuing of Guarantees
of Origin on the basis of the uniform standard which
facilitates transfer of GoOs and their recognition by another
EU Member States. The EECS system is designed as an
open system and it will be possible to expand it with other
types of certificates or GoOs (e.g. disclosure certificates,
CHP GoOs, etc.).
The area of GoO is in Slovenia regulated by the Energy
Act [3] and by the Governmental Ordinance [4]. Both acts
implement not only the RES-E Directive [1] but also the
CHP Directive [5]. The GoO Issuing Body for Slovenia is
Energy Agency of the Republic of Slovenia. The Slovenian
GoO system is a pure certificate system based on Central
Registration Database, in which GoOs are just another form
of certificates. The main difference between the systems of
Slovenian GoOs and RECS is that the former system is
defined and made obligatory by the national legislation,
while the latter represent only an entrepreneurial initiative
of an international group of market players.
III. USE OF TRADABLE GREEN CERTIFICATES AND
GUARANTEES OF ORIGIN
Taking into account the abovementioned fact that in most
of the EU countries there's no essential difference between
GoOs and TGCs, it can be concluded that they can be used
for exactly the same purposes. The main purpose of both
TGCs and GoOs is to provide evidence to the customer that
electricity supplied to him/her was indeed produced in the
way claimed by the supplier. This can encompass both
primary source of electricity (e.g. hydro, wind, solar, etc.)
and generation technology (e.g. CHP). Below there are
some examples of their practical use:
Green electricity products – suppliers offer
electricity from renewable sources to the market. The
price of this electricity is by rule higher than the price
of usual "grey" electricity. Such electricity is usually
sold under a specific trademark. Since electricity
suppliers are usually not able to bring electricity from
a specific power plant, such as small hydro PP, to
their customers through a direct line, they acquire the
adequate number of TGCs or GoOs from this power
plant or another power plant of the same type. At the
end of the year the suppliers redeem the exact number
of TGCs or GoOs that correspond to the quantity of
electricity the buyers of individual green electricity
product consumed in the past year. The suppliers can
also require issuing of special paper certificates of
redemption, which are used to provide an additional
proof to the customers that electricity supplied to them
was really produced from renewables and that all
benefits rising from such kind of production really
belong only to them. Green electricity products
represent a part of voluntary electricity market, a
market to which the players enter on fully voluntary
basis, usually due to their environmental awareness.
This is so until the state intervenes, e.g. by prescribing
obligatory quotas of electricity from renewables
(RES-E) or enabling tax reductions for customers
buying green electricity products. In such a case the
customers are no longer driven only by their
environmental awareness but by other factors, too.
They make it difficult to clearly distinguish between
obligatory and voluntary market.
Obligatory fuel mix disclosure – in addition to green
electricity products that represent a fully commercial
activity of electricity suppliers in the market, there is
also a general obligation of all suppliers in the
European internal electricity market to publish their
fuel mix of the preceding year on the issued electricity
bills. This area is in Slovenia regulated by the general
act [6], issued by the Energy Agency on the basis of
provisions of the Directive on Internal Electricity
Market [7]. The suppliers are obliged to publish their
overall fuel mix comprising both green electricity
products and the remaining "grey" electricity. The
suppliers can use redeemed TGCs or GoOs as
evidences of renewable share of their fuel mix
portfolios. Central Registration Database of GoOs can
also be used as a central national registry of RES-E
for the purpose of fuel mix disclosure. In such case
the suppliers can on their electricity bills specify only
the shares of RES-E that correspond to the number of
GoOs redeemed on their account.
Monitoring the fulfilment of prescribed RES-E
quotas – the state authorities can prescribe minimum
quotas that have to be fulfilled by individual suppliers.
The suppliers have to substitute the missing quantities
of RES-E by buying adequate number of TGCs or
GoOs. This creates a certificate market in which a
market price is formed on the basis of relation
between supply and demand. Such mechanism can
fully or partly replace the existing non market based
support mechanisms, such as the current Slovenian
feed-in tariff mechanism.
Meeting of national indicative targets of RES-E –
the countries that have surplus of electricity generated
from renewables with regard to their national
indicative targets as defined in the Directive [1], can
export their surpluses to be counted towards meeting
the importing country’s target. Guarantees of origin
can be used for this purpose only if the exporting
country accepts explicitly, and states on a guarantee of
origin, that it will not use the specified amount of
renewable electricity to meet its own target [8]. Since
these indicative targets will only have to be met in
2010, there have been no such transfers of GoOs so
far.
Implementation of certificate based RES-E support
systems – in some European countries there are
special RES-E support systems established that are
based on GoOs. Such systems are distinguished from
the purely market based support systems based on
3