New provisions lay the foundations for trade in guarantees of origin – Commentary


GO carriers
Issuance and recognition of GOs

Sale and trading of GO
Comment

On July 4, 2022, a new law(1) was enacted which modifies the legal framework for Guarantees of Origin (GO) which was previously provided for in Law 3468/2006. According to the new law, GOs will certify to consumers that part of the energy supplied to them comes from renewable energy or combined heat and power plants (or even from other types of energy sources). energy, such as energy storage plants, following the subsequent issuance of the implementing ministerial decree).(2)

GO carriers

According to the ministerial decree, the following persons or entities may hold a GO through an account held with the GO register:

  • electricity suppliers;
  • automotive producers;
  • producers with regard exclusively to their facilities;
  • the Greek Operator of Renewable Energy Sources and Guarantees of Origin (DAPEEP); and
  • respective holders of other EU Member States or third countries under certain conditions.

According to the new law, each GB corresponds to one megawatt of standardized power (one GB per megawatt). No more than one GB will be issued for each megawatt produced. Therefore, even if the electricity comes from cogeneration with the use of renewable energies, only one GO will be emitted.

Issuance and recognition of GOs

In accordance with the provisions of the ministerial decree, the issuing authority of the GOs will be the DAPEEP. The CEN-EN 16325 standard of the European Committee for Standardization (CEN) as well as the ministerial decision must be respected for the issuance, transfer and revocation of GOs.

For renewable energy or cogeneration plants commissioned before January 1, 2021, GOs are issued in the name of DAPEEP.

An exception to this, however, is that GOs are issued in the producer’s name for:

  • large hydroelectric plants;
  • factories that have only received or are receiving investment aid;
  • factories that have not received or are not receiving operating aid; Where
  • factories whose operating aid agreement has expired.

In addition, GOs are issued in the name of the producer for renewable energy or cogeneration plants that started operating from January 1, 2021 that:

  • have received or are receiving operating aid, for the period following the expiry of the operating aid agreement; Where
  • have not received or are not receiving operating aid or have only received investment aid.

Separate provisions have been made with regard to self-producers of electricity from renewable energies or cogeneration, according to which the GOs of electricity injected into the network can be issued under certain conditions either in the name of the DAPEEP or of the self-producer (while for the rest of the electricity, the GOs are issued in the name of the self-producer).

In the event of reasonable doubt about the validity and accuracy of the data underlying the issuance of GOs, the DAPEEP may refuse to issue them (upon a reasoned decision).

The Energy Regulatory Authority (RAE), on the other hand, when acting as supervisory authority, is empowered to deal with issues of mutual recognition of GOs issued in other EU Member States or third countries. As such, RAE may refuse (by a reasoned decision communicated to the European Commission) to recognize GOs issued in other EU Member States due to reasonable doubt as to their accuracy and reliability. RAE will only recognize GOs issued in third countries in the case of direct import and export of electricity and subject to agreements signed by the European Union and said third countries on the mutual recognition of GOs.

Sale and trading of GO

In general, GOs can be transferred either through auctions or through market platforms or bilateral agreements.

However, the GOs issued in the name of the DAPEEP concerning power plants in operation after January 1, 2021 are only sold by auction. Furthermore, under the (provided) conditions to be specified in the regulation on the terms of auction procedures, the transfer of GOs issued in the name of energy producers or self-producers may also be carried out by auction. RAE has been authorized to publish the relevant regulations on the specifics of auction processes following a proposal by DAPEEP, which should be submitted to RAE, until early October 2023. Six months after the publication of the regulations by RAE, the first auction is to take place.

In certain cases (case of self-producers for example), in the event of a change of owner of the factory, the GOs still in force are to be transferred by the DAPEEP to the new owner of the factory.

Comment

The negotiation of the GOs should financially support the new EnR Special Account from which payments must be made to the EnR and cogeneration plants commissioned from January 1, 2021, in accordance with the National Energy Climate Plan.

For more information on this subject, please contact Maria Ioannou at the Rokas law firm by telephone (+30 210 361 6816) or by e-mail ([email protected]). The Rokas Law Firm website can be accessed at www.rokas.com.

Endnotes

(1) Law 4951/2022 (OJ Α΄ 129).

(2) No. ΥΠΕΝ/Δ ΑΠΕΕΚ/81331/3661 (OJ B’ 4246/10.08.2022).

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