RECS (Renewable Energy Certificate System): Creating an international certificate system as a basis for a European renewables market

Eryl McNally MEP chaired the debate.

Peter Niermeijer explained the basic principle of separating “green” electricity into two products which are sold into separate markets: the commodity electricity market (marked today by low prices which would not in themselves support RES development), and a developing market for green certificates. The certificates encapsulate the “green” value of the RES electricity that has been produced. To ensure total credibility and eliminate the possibility of double selling, each certificate is uniquely numbered, so that it can be tracked from creation to the moment of consumption. Also, certificates can only be issued by accredited Issuing Bodies – usually one per Member State. The issuing body could be a TSO (Technical support organisation), or a government department or agency.

Several EU countries now have certificate systems, but the next stage is to develop a European market by facilitating cross-border trade. RECS currently has a “Country Test Phase” underway to demonstrate this with real certificates and money. To ensure success, it is critical that the Association of Issuing Bodies within RECS can agree common rules for issuing and recognising certificates. In effect this means governments must agree on mutual recognition and equal acceptance of imported or domestic certificates, which is not yet the case. RECS is now planning special meetings for government representatives, to address this issue.