Puls Biznesu 22.05.2003
'Certificates: the way to sell green energy'

With its number of followers equal the number of its opponents, the argument concerning green energy continues. Undoubtedly, the main advantage of the unconventional energy is its benefit for the environment. Its minus – the price. Green certificates are to be the solution.

The investors who develop green power engineering installations are charged with relatively high financial costs and this is the reason why they sell the energy at the price that is higher than the one of the conventional manufacturers’. The reason to introduce green certificates is to make the selling of so called green energy easier. The product will be sold at the conventional energy market price, but additionally, the manufacturers will be receiving green certificates that could be negotiable.

- The aim of the certificates is equalizing the differences in the energy prices. Producing energy will not be associated with pollution, while its price will be the same as the price of the conventional energy- says Grzegorz Wiśniewski, the director of the European Renewable Energy Centre.

The opponents of green certificates constitute mainly of the enterpreneurs, who have invested in green energy sources and expect the market to be sorted out.

- Marking green energy is necessary. It will help to sort out the market- it will enable carrying out statistic surveys and bilances. As far as the energy source certificate can be valid without any green certificates, it should secure that all. The situation like this occurs for instance in Germany – says Piotr Wiśniewski, the inverstor of the Energia Eco company.

Despite a legal duty to buy the energy from the renawable sources, few Electricity Genereting Boards conclude contracts with producers of the wind energy. Moreover, in 2002 Polish Electric Power Industry Networks introduced internal regulations, which include the principles of buying and selling the energy on the balancing market. According to that, the producers of green energy have to plan 48 ahead how much energy they will produce. It is impossible in practice. On 1 July 2003 a new directive is supposed to be implemented and it will supersede the existing one unabling the contractor of the wind energy concluding contracts with Electric Generating Boards.

-So far, Electric Generating Boards preferred paying fines charged by URE for not having bought green energy. The main reason is that the fines are small, URE acknowledges them and is free to charge them - reckons Grzegorz Wiśniewski.

EC directive No 2001/77/EC prohibits a discrimination of the renewable energy producers. The forecasts say that in 2010 12% of the energy consumed in the Member States is supposed to be coming from the renewable sources. As the specialists reckon, the introduction of the certificates in Poland will mean solving the problem concernig the prices of the wind energy. Power engineering companies will be buying it at the turnover price – in return they will be obtaining a specified number of certificates. The certificates (in the form of electronic entries in the register) will be granted to the renewable energy producers for each, specified amount of energy provided to the company’s turnover. As soon as the certificates are registered, the producers will be able sell them – the profits are supposed to cover the loses arising from a decrease in the green energy selling costs.

-This mechanism will enable achieving the objectives concerning the quantity of the renewable energy being purchased – emphasizes Grzegorz Wiśniewski.

At the end of the clearing of accounts period Electricity Generating Boards will have to prove a relevant number of purchased certificates, proving that they have done their duty.

- We can compare the turnover of the certificates to buying and selling shares at the stock market. The prices will be going up or they will be falling down. These are sheer speculations. So far, it is not worth contemplating – stresses out Piotr Wiśniewski.

The Ministry of the Environment suggest that a state fund should be established and its aim would be buying up oversupplied certificates. The fund would also guarantee maintaining their lowest price.

Electricity Generating Boards which will not fulfil the obligation to buy the renewable energy and will not prove the possession of the specified number of certificates, will be fined with the obligation to buy them (from the fund) at the maximum price registered in a specified clearing of account period.

The solutions for those companies with the certificate surplus, have also been forseen. It will be acceptable to transfer the certificates to the consecutive clearing of accounts period.

However, before green certificates are available on the market, an entry concerning the testimonies of the renewable energy source should be made in the power engineering law.

- The testimonies would authenticate the source of the energy. At the same time, they would eliminate the situations where “the black” energy would be sold as “the green” one. The testimonies would open a way to the trade of green certificates. So far, the Ministry of the Environment is working on the statute that would regulate the supporting mechanisms, such as certificates. Still this year the energy source testimonies are to be introduced, while the certificates will be introduced in the first quarter of the next year- says Grzegorz Wiśniewski.

Maria Czudowska

"Certificates: the way to sell green energy (PDF)"