31 Jan 2002 – The first Swedish green certificates have now been issued and sold. The biofuel-fired CHP plant in Eskilstuna has been registered in the Swedish RECS system and 20 000 certificates are to be acquired by the Dutch energy company Eneco.
Green certificates are issued for electricity generation based on renewable sources of energy in accordance with the European standard RECS (Renewable Electricity Certificate System). A green certificate is issued for every MWh of electricity that the plant concerned produces. These certificates can then be bought by organisations and private individuals who wish to support renewable electricity generation.
The Eskilstuna CHP plant is owned by Eskilstuna Energi och Miljo AB. Vattenfall AB Supply & Trading has been commissioned to manage the environmental value of the plant’s electricity generation as expressed in the form of green certificates. Vattenfall has also signed an agreement with Eneco concerning the provision of 20 000 green certificates. The London-based broker Natsource arranged this deal.
Before any certificates can be issued, an independent organisation must check that the generation concerned really is renewable and that its environmental value is not sold twice. SwedPower AB has been responsible for the documentation and Det Norske Veritas has carried out the first verification of a Swedish plant in the RECS system on behalf of Vattenfall.
RECS is a European platform that comprises over 100 organisations from 17 countries. The members include most of the major European electricity companies. Primary responsibility for the system is held by an Issuing Body in each country. In Sweden, this body is Svenska Kraftnat. The aim of RECS is to contribute to an international harmonisation of the national certificate systems that are now being developed in the EU.
“This shows that trading in green certificates works in practice. The revenues earned from the sale of green certificates encourage the electricity generators to develop more renewable electricity generation capacity,” says Claes Hedenstrom of Vattenfall AB Supply & Trading