As mentioned above, the RET is predicated upon a system of tradable green certificates which incentivise renewable electricity generation. Individual certificates are issued and tracked through the Renewable Energy Certificate (REC) Registry, which is administered by the Clean Energy Regulator.
Certificates are created by renewable energy producers for each megawatt hour of renewable energy generated and then sold to wholesale purchasers to satisfy their renewable energy obligations. Certificates are surrendered by purchasers to the Clean Energy Regulator yearly, as is required under The Renewable Energy (Electricity) Act 2000 (Cth).
Electricity and Water Minister announced in January 2020 that the Sustainable Energy Authority (“SEA”) is working on the development of a Renewable Energy Certificate (“REC”) programme that will certify the generation of electricity from a renewable energy source. [1] RECs are tradable certificates and the SEA will evaluate and control the amount of energy produced and approved in the form of a "renewable energy certificate" for every 1 megawatt hour. [2] The issuance of these certificates is governed in accordance with Directive No. 1 of 2020 regarding the Regulations and Requirements for Granting Renewable Energy Certificates. [3] To encourage the same, a voluntary certification scheme based on the award of danats (a point system based meeting a set criteria) is being considered. [4]
[1] GDN Online Desk, ‘Renewable Energy Certificates Planned’ GDN Online (6 August 2019) accessed 11 March 2020
[2] Trade Arabia, ‘Bahrain to Launch Renewable Energy Certificates’ accessed 11 March 2020
[3] Directive No. 1 of 2020 regarding the Regulations and Requirements for Granting Renewable Energy Certificates
[4] No. (4).
When it comes to tradable green certificates, reference is made to the answer to the above question.
As for guarantees of origin (GoOs), it should be observed that there are four parallel schemes of GoOs in Belgium. The reason, therefore, is the division of competences when it comes to renewable energy (see above).
Federal level: The federal GoOs can only be issued for electricity produced offshore from water, currents or wind.
Flemish Region: Flemish GoOs are granted to the owner of a production plant located in the Flemish Region, or to the natural or legal person designated by him for this purpose, for each 1 000 kWh of electricity generated in the plant from renewable energy sources (wind, solar, aerothermal, geothermal, hydrothermal energy, ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogas) or qualitative cogeneration. In May 2020, the Flemish energy regulator (VREG) for the first time also issued GoO for gas.
Walloon Region: Walloon GoOs are granted for electricity produced from renewable energy sources, from combined heat and power systems. In addition, GoOs are also granted to gas produced from renewable sources.
Brussels Capital Region: GoOs are granted to production and cogeneration plants that (i) are located on the territory of the BCR and, (ii) that have been the subject of a prior certification procedure. Every GoO corresponds with a volume of 1000 kWh green electricity.
No.
Brazil integrates the International REC Standard and, therefore, is authorized to issue RECs (Renewable Energy Certificates), by means of a single authorized issuer, and the Brazilian companies can trade such RECs. The issuance of such certificates has exponentially risen in the past few years, with over 9 million certificates issued up to 2022. Each certificate equals 1 MWh of renewable energy generated and injected in the power system.
There is no regulation on green certificates, and currently there is no scheme for their commercialization. Generation companies issue such documents to their clients, certifying that the energy purchased correspond to NCRE.
In addition, Renewable Energy Certificates (CER) have recently entered into the market dynamics where incumbents offer end-costumers to certify under an international standard that a portion or total energy meets are met by renewable energy.
The National Electric Coordinator, an independent technical body in charge of coordinating the operation of all the facilities of the National Electric System, launched in 2021 the RENOVA platform, a National Renewable Energy Traceability Register, which is helpful for these purposes.
Colombia does not have a RECs system nor regulations regarding the issuance of RECs. Companies issuing RECs are often registered with the International I-REC Standard. The International REC Standard has authorized and accredited ECSIM to become Local Issuer of I-REC certificates in Colombia.
However, Law 1819 of 2016 created the carbon tax in Colombia. Furthermore, Decree 926 of 2017 created the carbon neutrality mechanism and pursuant to that regulation, a renewable energy project qualifies as an initiative eligible for selling carbon reduction credits.
Trading of RECs in Colombia is not regulated and therefore issuers and buyers agree the conditions of trading without the State’s intervention.
Yes, the Czech Republic uses certificates of origin, which declare the quantity of a given commodity produced at a specific location, at a certified facility and under specified conditions.
Furthermore, the Czech Republic operates Green Certificates, which prove that certain electricity is produced using renewable energy sources. These certificates have two purposes. Firstly, they can serve as an accounting mechanism in the event of having to comply with obligations set by the government, or as proof that a certain amount of renewable energy has been produced, for customers requiring green electricity. Second, green certificates help to create a market for green certificates that operates independently of the electricity commodity market.
EgyptERA issued certificates of origin for the power for each MW/h, provided that the electricity produced is not less than 1 MW/h. The certificate is intended to incentivise the consumption of energy from renewable resources by permitting trading in the certificates.
The Egyptian Exchange (EGX) has partnered with the Agricultural Bank and Libra Capital to establish Libra Carbon. This is the first Egyptian company to specialized in the management and issuance of carbon certificates. The company will include all of the necessary components for trading and issuance of carbon certificates.
Not applicable.
Yes. Finland has enacted national regulation for guarantees of origin for electricity, gas, hydrogen, heating and cooling and the verification of the origin of energy by guarantees of origin.
Guarantee of origin (GoO) is a certificate issued for electrical energy produced using renewable energy sources in accordance with the applicable legislation. If an electricity supplier sells or uses renewable energy in its marketing, it must verify the origin of the electricity. GoOs may be transferred from one account holder to another within the Finnish GoO register, and GoOs can also be imported/exported between other AIB (Association of Issuing Bodies) member registers.
The generators can freely sell the certificates generated to the produced volumes together with the physical electricity output from the production plant under a PPA or separate from the physical electricity sales to be traded on an open market.
The European Directive n°2009/28/CE dated 23 April 2009 relative to the promotion of the use of energy generated from renewable sources which provides the Guarantee of Origin scheme for renewable source electricity was implemented in France in 2012, through articles L.314, R.314 and R333 of the French Energy Code.
In France, the guarantee of origins is issued by an independent organization (currently Powernext) and certifies that a renewable energy or cogeneration source has injected a quantity of energy into the electrical grid (one guarantee of origin representing one MWh of electricity produced).
According to article L.311-21 of the French Code of Energy, “Electricity produced for which a guarantee of origin has been issued by the producer may not give entitlement to the benefit of the purchase obligation or the contract for difference within the framework of the contracts mentioned in Articles L. 121-27, L. 311-12, L. 314-1, L. 314-18, L 314-31 and, where applicable, L. 314-26”.
Therefore, legislative change in the French Code of Energy would be necessary in order to allow French companies to receive a guarantee of origins for the green electricity purchased from a facility benefitting from a contract for difference mechanism. Such change may not to be expected for the foreseeable future, as during the Parliament’s discussions on the Climate-Energy Law in 2019, amendments to this rule have been submitted and have been rejected [See Note 1].
Note 1: Amendment no. 47 proposed by Mrs Préville, on July 16, 2019 and amendment no. 537, proposed by Mr Lambert, on June 21, 2019.
Upon request of the installation operator, and where no support payment (i.e. especially no market premium or feed-in tariff) has been claimed by the installation operator for the relevant amounts of electricity, the German Federal Environmental Agency (Umweltbundesamt) may issue guarantees of origin (Herkunftsnachweise - GoO) for electricity generated by renewable energy sources, which may be used for trading purposes.
German law additionally provides for the issuance and transfer of guarantees of regional origin (Regionalnachweise - GoROs). However, GoROs can only be transferred along the contractual supply chain of the electricity for which they have been issued.
As an EU Member State, Greece is obliged to have a guarantee of origin scheme for renewable source electricity.
Under the current legal framework, guarantees of origin certify that part of the energy consumers are supplied with is sourced from renewable plants or heat and power cogeneration (or even other types of energy sources, such as energy storage plants, following the subsequent issuance of the Ministerial Decision no. ΥΠΕΝ/Δ ΑΠΕΕΚ/81331/3661).
Other than Guarantees of Origin, no scheme of tradeable certificates associated with renewable generation exists in Ireland.
Yes, certificates of origin for renewable-energy plants are granted to producers of electricity from renewable sources actually generated and injected into the grid in each solar year; they are aimed at promoting transparency in the contracts of sale of renewable energy.
ARERA approved a number of rules to guarantee that the electricity sold to the individual customers is actually generated from renewable sources and not sold multiple times.
No.
The clean energy certificates (CELs) are issued by the Energy Regulatory Commission (CRE) in Mexico to renewable facilities.
No.
So far, there is no national support scheme with tradable green certificates as such. In fact, there is a scheme for the issuance of carbon credits stemming from the development of new and renewable energy projects. However, such credits are property of the Mozambican State, and the Government, at its sole discretion, may share its gains in a pre-negotiated portion if it considers that such share may be an incentive for an IPP with experience in the carbon credit market.
All EU Member States are obliged to have a Guarantee of Origin scheme for renewable source electricity, which has been implemented in the Netherlands as Garanties van Oorsprong (GoO), of which Verticer is the system administrator.
The GoO’s can be transferred from the generator to the offtaker, and cPPAs often provide for this transfer. Through this transfer, the offtaker is able to validate the renewable source of the energy consumed.
As noted above, New Zealand does not currently have a universally recognised, national support scheme with tradable green certificates.
Yes. Guarantee of origin (GoO) is a certificate issued for electrical energy produced using renewable energy sources in accordance with the applicable legislation. If an electricity supplier sells or uses renewable energy in its marketing, it must verify the origin of the electricity. GoOs can be transferred from one account holder to another in the Norwegian GoO register, and GoOs can also be imported/exported between other AIB (Association of Issuing Bodies) member registers. Currently the market value of the GoOs is limited.
A renewable and negotiable energy certificates regulatory framework has not yet been developed in Peru.
Companies manage sustainability certificates for reputational reasons.
Within the framework of sustainable buildings construction, companies seek to obtain international certificates such as the Leadership in Energy and Environmental Design (LEED) certificate or the Excellence in Design for Great Eficiences (EDGE), which shows that design, construction and operation of the building was carried out efficiently and sustainably.
Yes. According to the Renewable Energy Sources Act of 20 February 2015, a guarantee of origin is a document certifying to the final customer that the amount of electricity fed into the distribution network or transmission network specified in this document was produced from renewable energy sources in RES installations. Guarantees of origin of electricity from RES are traded on the Polish Power Exchange (POLPX). According to the legislation, guarantees of origin are issued in electronic form and transferred to the Register of Guarantees of Origin (RGP).
Yes, Portugal has a national support scheme with tradable Guarantees of Origin (GOs). This scheme is based on the issuance of GOs by the Guarantees of Origin Issuing Body – EEGO (which in the Portuguese case is REN) and negotiation and trade of GOs through the EEGOs system. Pursuant to legislative amendments to the rules governing GOs, trade of these instruments is increasingly open to renewable energy producers.
We are not aware of a national support scheme with tradable green certificates.
Not at present. While the trading of renewable energy certificates ("RECs") is recognised in South Africa, the South African government does not participate in or regulate RECs (a REC initiative on regulation and certification was suspended by the government in 2010/11 and has not, to our knowledge, been formally recommenced). The South African government does, however, permit RECs to be traded voluntarily. There is therefore no central registry in South Africa and the market in South Africa currently operates on a voluntary basis (in terms of certification, trading and registration).
Guarantees of Origin (GoOs) may be issued to all generators of energy from renewable sources. GoOs can only be exported by the owners of a power plant (and when exported, the generators have to renounce to the respective support scheme). Additionally, Spanish consumers appreciate GoOs for corporate image and social responsibility reasons.
In 2012, Sweden and Norway put together a joint electricity certificate (elcertificate) scheme which sought to boost renewable electricity production in both countries. This is a market-based support scheme whereby producers of renewable electricity receive one certificate per MWh of electricity they produce for a period of up to 15 years. All forms of renewable electricity are eligible for this scheme.
The electricity producers can freely sell their certificates, which can generate extra revenue for their electricity production – these are traded on an open market with parties free to agree their price. The purchasers of these certificates are Swedish or Norwegian parties who are required to purchase certificates to meet quotas set by the Swedish and Norwegian legislation. In Sweden, participants have to buy certificates corresponding to approximately 25% of their electricity production/consumption. The obligation to buy certificates is prescribed by law and will continue in Sweden until 2035 (although we note that the Swedish Energy Authority has recently proposed to look into whether the system should be cancelled earlier than 2035).
If a purchaser is also a supplier of electricity to end-users, the cost of the certificate will be passed on – therefore electricity consumers in Sweden and Norway contribute to the expansion of the production of renewable obligations. Quotas are applicable on an annual basis, and each year the electricity certificates are cancelled. This means that purchasers must buy new certificates to continue to meet their obligations, thus creating a continuing demand for certificates. The quotas are calculated on a country-by-country basis (one quota for Sweden and one quota for Norway) based on assumptions about the future usage of electricity. Those assumptions were made with a view to facilitating the increase of renewable energy of 26.4 TWh until 2020. Sweden subsequently expanded the ambition by adding an additional 18 TWh for the period until 2030. Since the goal of adding 46.4 TWh of renewable energy was reached in March 2021, the Swedish government has decided to phase out the elcertificates system. Production facilities being taken into operations after December 31, 2021, are no longer entitled to allocation of electricity certificates and the electricity certificates system will be completely cancelled in 2035 (or earlier).
Sweden also participates in the Guarantees of Origin scheme. A guarantee of origin is an electronic document proving to a final customer that the corresponding 1 MWh of electrical energy was produced from renewable sources.
The Directive (EU) 2018/2001 of the European Parliament and of the Council of December 11, 2018, on the promotion of the use of energy from renewable sources states that all renewable power producers have a right to receive guarantees of origin for their production. The Swedish Energy Authority (Energimyndigheten) has a duty to issue GOs, as prescribed by the Swedish Act on Guarantees Of Origin 2010 (Lag (2010:601) om ursprungsgarantier för el)).
CESAR is the registry for GOs in Sweden. GOs are issued based on meter values from the Swedish balancing settlement.
No, there is no national support scheme with tradable green certificates.
Not applicable.
Generally not, although there are certain projects that we understand have attempted certification.
In GB, the Government has gradually cut back support schemes for onshore renewables as development costs for renewable generators sink, allowing for the first subsidy-free renewable projects.
The Renewables Obligation scheme detailed above set an obligation on electricity suppliers to source a proportion of the electricity that they supply to costumers from renewable sources. Suppliers evidence this through the purchase of Renewable Obligation Certificates (ROCs) from eligible generators. The scheme has been closed to new participants on 31 March 2017, and projects that already receive support under the ROC scheme will continue to do so until either (i) the end of a particular project's lifetime or (ii) in 2037 when the scheme fully closes.
Throughout the US, there are many regional electronic REC tracking systems to facilitate the creation, management, and retirement of RECs. Users establish virtual accounts to allow the receipt and transfer of RECs. The Center for Resource Solutions offers “Green-e” products which are subject to third-party verification and detailed standards as to additionality and other environmental considerations.
No.
Angola
To what extent are corporate PPAs presently deployed and what sort of structure do they take?
Corporate PPAs remain uncommon in Angola.
Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.
Article 15 of the Executive Decree No. 122/19 of May 24 (electric energy sales tariffs) provides special arrangements for the sale of electricity by means of special or bilateral contracts between producers and distributors and those with final customers, under the terms set out in the Tariff Regulations (Presidential Decree No. 4/11 of January 6) shall be authorized by an order of the Minister of Energy and Waters, after hearing the regulatory authority.
All the contracts with National Transportation Network ("RNT" as a sole buyer must comply with certain requirements specified in Article 11 of the Presidential Decree No. 4/11 of January 6 as amended by Article 11 of the Presidential Decree 178/20 of June 25, in order to their prices are allocated to tariffs.
Do the country's regulators allow corporate owners to purchase (1) directly from a facility, or (2) from a choice of suppliers?
In accordance with Article 11 of the General Electricity Law, the use of the facilities and networks that incorporate the Public Electricity System is allowed under the conditions provided for in the aforementioned regulation or agreed between the interested parties and their holders, as long as the supervisory body approves it after prior validation by the regulatory authority.
Hence, corporate owners are allowed to purchase directly from a facility or a choice of suppliers, as long as it has been approved by the supervisory body and has effectively gone through a prior validation from the regulatory authority.
Other than the generator and the off-taker, are any third parties commonly party to the PPA structure (e.g. a utility or other market agent)?
In addition to the electrical energy provided by the Company ENDE E.P (National Electricity Distribution Company) that comes from hydraulic dams and private generators, so far, there are no other third parties as a common party to the cPPA structure.
Is a generator permitted to sell electricity directly to an end user? If so, do they require a licence or other form of authorization?
As previously stated, Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.
Angola
What are some of the technical, political, financial or regulatory challenges to corporations adopting green energy in the short/medium term in your country and how have these challenges been overcome (or how can they be overcome)?
More incentives and benefits need to be created for companies that want to implement green energy systems. Facilitating the process of importing and accessing currencies to pay for equipment to implement the projects related to renewable energy is necessary. Governments should create incentives for companies that are implemented across the country, thereby creating employment and facilitating greater acceptance of new technologies in rural areas.
Angola
Are there any anticipated regulatory changes which will alter the regulatory landscape for corporate green energy and corporate PPAs?
International development partners are providing technical support to the Angolan government to establish a regulatory framework which includes negotiating power purchase agreements with independent power producers (IPPs) and design of a feed-in-tariff scheme for renewables.
Angola
What is the corporate appetite for green energy, including any political or financial incentives available to corporates to adopt green energy?
Even though national and international companies have been showing interest to develop green energy structures in Angola, this is still something that has to be well studied and thought through it. However, there are already small dimensions of solar energy structures being developed, for example, but only for particular purposes.
What are the key local advantages of the corporate PPA model which can benefit our clients?
The key local advantage of the corporate PPA model in Angola is energy security and easier access to financing having the corporate PPA as collateral.
What subsidies are applicable to the generation and sale of renewable energy?
This information has not been made public.
Does your country implement a national support scheme with tradable green certificates (such as guarantees of origins)?
Not yet, as green energy has not yet been implemented.
Angola
To the extent corporate PPAs are deployed, how are prices, terms and risks affected?
| Topic | Details |
| Do prices tend to be floating or fixed? |
According to Article 26 of the Presidential Decree 178/20 of June 25, the tariff structure is applied by the RNT concessionaire and by the distribution companies to users connected to their networks. Along these lines, this same diploma, on its article 27, establishes that the tariff structure reflects the costs to which users give rise, according to the characteristics of consumption and the level of tension to which they are connected, regardless of their social or legal character and the final destination give to the energy consumed. Hence, the prices are fixed considering the elements above mentioned. |
| What term is typically agreed for the PPAs? | There is not a fixed-term for cPPAs it all depends on the activity to be exercised. However, it is important to mention that the tariff regime is, in general terms, in force in a four-year tariff regime. Alongside with that, the tariff period is defined by a specific diploma by the Sector Regulatory Entity, which must be multiannual, as established on Article 28-A of the Presidential Decree 178/20 of June 25. |
| Are the PPAs take-or-pay or limited volume? | Not applicable |
| Are there any other typical risks? | Not applicable |
To the extent corporate PPAs are deployed, in whose favour will the risks typically be balanced?
| Type of risk | Details |
| Volume risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Change in law | Usually, when changing legislation, users and distributors are given a period to prepare and adapt to this mentioned change of legislation. Hence, when there is a change in law non complied with, the risk is born by those who have not complied with the rule in place. |
| Increase / reduction of benefits | Again, similar to the change in law, the risk is born by those who not comply with rule applicable to the specific situation. |
| Market liberalisation (if applicable) | Not applicable |
| Credit risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Imbalance power risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Production profile risk | The risk is born by those who not comply with rule applicable to the specific situation. |
Angola
Does your country operate a balancing responsibility scheme?
Not applicable.
If your country operates a balancing responsibility scheme, who is the balancing authority and do the generator and offtaker typically undertake balancing themselves?
Not applicable.
Angola
What significant transactions/deals have taken place in the last 12-18 months?
Laúca Hydroelectric Power Plant
According to the Government, Laúca Hydroelectric Power Plant (“AH Laúca”) is the largest work in the country today. The Project was commissioned by the Angolan Executive, represented by the Ministry of Energy and Water, and is carried out by ODEBRECHT. COBA and LA MAYER carry out the supervision of the implementation of the project. When AH Laúca is 100% operational, it will produce more than twice as much energy as the other two dams already operating on the Kwanza River. This energy potential will serve 8 million people. AH Laúca will produce 8,643 GWh (gigawatts) of electricity, representing an installed capacity of 2,070 MW (megawatts).
The realization of the project demands great infrastructure support. Because of this, AH Laúca is today a city that is composed by: Leisure area; Sports area; Accommodations; Kitchen and Cafeterias and Medical Center.
AH Laúca is a pole of job and income generation. The project is also committed to providing opportunities for national talent. Today, the enterprise has 8,458 Members. Of these, 8,035 are national, which represents 95% of the entire productive force involved in the execution of the work. The remaining 423 are expatriates, a number that represents 5% of total members.
Through the Acreditar Program, the project offers basic and specific training to AH Laúca Members and also to the residents of the communities surrounding the construction site.
AH Laúca is 86% ahead of Civil Works, 72% ahead of Electromechanical Assembly and 14% in the Energy Transport System. Always overcoming challenges and fulfilling all the goals set with safety, quality and productivity.
2nd Hydroelectric Power Plant of Cambambe and Dam Alignment
With the conclusion of the Cambambe 2nd Power Station and the Dam Raising, it was possible to obtain an additional power of 780MW. This power is helping to reduce the energy supply deficit in the Provinces of Luanda, Kwanza Sul, Malanje, Uige, Kwanza Norte and Bengo.
It will also allow the interconnection of the North-Central Systems with the Benguela Province link, thus reducing production costs and the consumption of diesel for energy production.
More than 10,000 construction posts have been created as part of the temporary work in the rehabilitation, modernization and extension of the hydroelectric complex. The construction owner was GAMEK (Gabinete de Aproveitamento do Médio Kwanza) and the contractor was ODEBRECTH.
Solar village program
The main objective of the Solar Village Programme is electrification, through the installation of autonomous solar photovoltaic systems (isolated) in infrastructures Social, including: Schools; Medical Posts; Police Posts; Administrative Buildings; and, Social Jangos, including Public Lighting Posts.
In the 1st phase of the Programme, awarded to the company Elektra Electricidade e Águas, Lda, 11 localities were selected from 4 Provinces in the country: Bié, Kuando Kubango, Malange and Moxico. This phase has been completed since 2011, with a total of 156,660 Wp of 42 systems and 70 public lighting posts implemented.
In some cases, a system provides electricity to more than one infrastructure. So far, 50 infrastructures have benefited from the electricity supply, namely: 15 schools, 18 medical posts, 1 maternity ward, 1 police station, 1 police station, 9 administrative residences, 1 nurse's residence, 3 administrations.
In the 2nd phase of the Solar Village Programme, four companies were selected for the installation of a total of 75 systems and 160 streetlights.
As part of the 3rd phase of the Solar Village Programme, the project has already started after the Auto de Consignation signed with the Company LTP Energias S.A. The project will benefit the provinces of Kwanza Sul, Cuando Cubango and Lunda Sul, whose aim is to supply electricity to the communities with Solar Photovoltaic Systems of Auto-consumption Kits and Public Photovoltaic Lighting.
It is part of the energy and water sector action plan 2018-2002, to continue the Solar Village Programme and to ensure adequate maintenance of its infrastructure and test a new concept of a 100% solar mini network, based on batteries, to electrify the most isolated municipality headquarters, avoiding fuel logistics.
What transactions/deals are anticipated to come to market in the next 12-18 months?
See Past transactions.
Angola
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