Guarantees of Origin Scheme

30th November 2011

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Guarantees of Origin – a brief history

• EU Directive 2001/77/EC - first mentioned GOs• Replaced by the Renewable Energy Directive

2009/28/EC• Legislation transposed on the 28th of March 2011• S.I. (Statutory Instrument) 147 of 2011• SEMO named as the Issuing Body for Ireland• CER tasked with developing the Supervisory

Framework

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What is a Guarantee of Origin?

“Guarantees of origin issued for the purpose of this Directive have the sole function of proving to a final customer that a given share or quantity of energy was produced from renewable sources.”

- Section (52), DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILof 23 April 2009

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Renewables Directive

• The sole purpose of GOs is Fuel Mix Disclosure• There is no connection between national targets

and FMD• GOs do not follow the physical flow of energy

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What is a Guarantee of Origin?

• Standard size of one megawatt hour (1MWh)• Issued on request of the Generator• Guarantee that electricity has been produced from

a renewable source

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Guarantee of Origin – Renewable Sources

Examples of renewable sources:

• Wind• Solar• Ocean Energy• Biomass• Hydropower• Landfill Gas• Aerothermal• Geothermal• Hydrothermal

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Fuel Mix Disclosure – Interim Solution

• SEMO completes the calc on an annual basis• All Island Fuel Mix• Suppliers submit declarations and ‘claim’

generation (Both in-market and out-of-market)• Interim solution for 2008, 2009, 2010• For these years FMD was based on physical flows

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FMD 2010 Breakdown

15.98%1.59%

64.06%

5.78%

12.11%

0.48%

Final Overall Mix 2010

Coal

Oil

Gas

Peat

Renewables

Other

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Fuel Mix Disclosure – Output

• SEMO provides an individual Fuel mix breakdown to Suppliers

• And All Island Mix breakdown• Display on their customers’ bills• Consumers may use this comparison when

deciding which supplier to choose

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Fuel Mix Disclosure – Enduring Solution

• Enduring solution to be in place next year for 2011 calculation

• Next year Suppliers will be able to declare Irish GOs

• GOs do not follow physical flow• Deadline for Supplier Submissions for Disclosure

Period 2011 is the 31st March 2012

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Guarantee of Origin - Status

• Used• Deemed to be used in a disclosure period in which the

GO is counted for FMD purposes• A GO can only be used once

• Active• 12 months from the date of production• Can be used in any disclosure period in which it is active

e.g. a GO issued on 1st of June 2012 can be used in FMD 2012 or FMD 2013

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Guarantee of Origin - Status

• Expired• Expires after 12 months• Can still be used or transferred after expiration

• Cancelled• When used in FMD• If not used in final FMD Disclosure Period, into Residual

Mix• Cancelled GOs cannot be used or transferred again

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GO Scheme – Business Processes

SEMO will administer the following processes:

• Registration • Request• Issuing• Transfer• Import • Revocation

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GO Scheme – Business Processes

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GO Calendar

• Some processes are ad hoc

• Others are quarterly

Quarter End Date

Quarter 1 31st March

Quarter 2 30th June

Quarter 3 30th September

Quarter 4 31st December

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GO Registration

• Download from the SEM-O website

• Pack for Generators, Pack for Suppliers

• ‘Enable Macro’ document available on the website

• Pack must be fully completed

Microsoft Office Word Document

Microsoft Office Excel Macro-Enabled Wor

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SEMO Website - GOs

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GO Registration – Authorised Users

• Nomination of Authorised User (Internal)• Nomination of External Agent (External)

• Can only have either an internal or external authorised user to Request, Issue, Transfer

• Supplier can act as an External Agent• Password provided must be 8 characters• Authorised Users and Passwords will be logged

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GO Registration

• Once completed email to guaranteesoforigin@sem-o.com

• Acknowledgement email with Ref Number will be sent

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GO Registration

• Within SEM Generators – details checked internally• Out of SEM Generators – details checked with DSO• Suppliers – details checked internally

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GO Registration

• ID will be issued, this is separate to any market IDs • This ID will be used for all correspondence relating

to GOs and FMD• Central registry will contain these IDs• SEMO asks if participants can confirm receipt of

this ID

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GO Registration

• Enduring Registration Process will take 21 Working Days to complete

• Need to have Initial Registrations complete by the end of 2011

• 19 Working Days until Xmas!!!

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GO Requests

• Ad Hoc process • Generator sends request, receives Ref Number• Two validation checks

• 1) Is the Generator registered for the scheme?• 2) Are template details correct?

• 2 WDs for this validation • Except for 10 WDs before end of quarter, extended

to 5 WDs

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GO Requests

• Requests can be for more than 1MWh, varying Start/End dates

• Verified Requests added to the request log• Invalid Requests rejected• SEMO will be backdating GOs for 2011• Start sending in requests once registered for the

scheme

Microsoft Office Excel Macro-Enabled Wor

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GO Issuing

• Quarterly process

• Metered Generation (MG) pulled from SEM Market Systems (within market) and requested from MRSO (out of market)

• 10 Working Days after end of quarter

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GO Issuing

• Cross check Requests against MG• a) If Requested MWh <= MG – GOs Issued• b) If Requested MWh > MG – GOs Rejected

e.g. Request MWh = 10 MG MWh = 9

Authorised User will be informed that 9 are available

• Request can be resubmitted with revised values• Resent within 2 WDs

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GO Issuing

• Electronic document as per the S.I.• Each certificate has its own unique ID• Certificates emailed to the Authorised User (20

WDs after the end of the quarter)• Authorised User calls SEMO with their password• The file password is then given• Password is randomly generated• Certificates can then be accessed

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GO Issuing – Format of a GO

• Will be in XML format

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GO Transfer

• Ad hoc process (need to be completed by 31st of March 2012 for 2011 FMD)

• Current holder’s Authorised User sends in a Transfer Request

• Details of the New Holder (GO Participant)• SEMO verifies the details and updates the Central

Registry• New updated certificates sent to New Holder

Microsoft Office Excel Worksheet

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GO Transfer

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GO Transfer - Exports

• Export transfers are included here – need MS • New certificates not sent on – registry updated as

‘Exported’

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Renewables Attributes Transfer

• Quarterly process• Supplier advises which Generators they have PSO

PPA agreements with • SEMO will be checking PSO lists • However, need as much info as possible

• Attributes will be assigned automatically every quarter

• If details change, must advise SEMO

Microsoft Office Excel Macro-Enabled Wor

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GO Revocation

• Ad hoc – Only where SEMO have grounds to suspect fraud; rules set out in S.I.

• SEMO will advise the CER of concerns, however final decision will be taken by SEMO

• Post notice to current holder – must be written notice as per S.I.

• Previous holders will be advised, if contact details are available

• Update Central Registry with ‘Revoked’

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GO Imports

• Ad hoc process• Advise SEMO ASAP – will need to contact Member

States to verify validity• If no response from MS after 10 WDs - rejected

• Minimum details required – Static Data• SEMO will work on building contacts within Member

States

Microsoft Office Excel Worksheet

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Conclusions

• Registration process to be completed • Requests accepted ad hoc• Issuing once per quarter• Transfers accepted ad hoc• Imports accepted ad hoc• Revocation – as required

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Next Steps

• Registrations to commence asap• Once registered send through requests• Backdating to commence for 2011 in January• FMD MOST to be held in January – All Island

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Next Steps

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Q&A

Thank you for your attention!