Green power

INTRODUCTION

Since 1 January 2002 a green certificate system has been in effect in the Flemish Region, with which Flanders aims to promote power generation based on renewable energy sources.

This is a two-pronged system. On the one hand producers of electricity based on renewable energy sources can receive green certificates. On the other hand there is a certificate obligation in place for power suppliers. They must submit a specific number of green certificates.

THE AWARDING OF GREEN CERTIFICATES

Producers of electricity based on renewable energy sources can receive green certificates from the VREG for electricity generated in the Flemish Region from the following renewable energy sources:

• Solar power
  Energy generated from sunrays
• Wind power Energy generated from the wind by means of a wind turbine
• Hydropower
  Energy generated from water by making use of the height difference or the rate of flow of water
• Tidal power
  Energy generated by making use of the difference in water level between low and high tides
• Wave power
  Energy generated from the rapidly changing seawater level due to the presence of waves
• Geothermal power
  Geothermal energy, or the internal heat of the earth, is the energy generated by making use of the temperature difference between the earth's surface and heat basins deep within it
• Biogas
  Biogas is generated by the fermentation of organic material, energy is generated from this fermentation process in biogas facilities
• Landfill gas
  Gas mixture of methane and carbon dioxide released when organic material is converted in a landfill by bacteria and can be used to generate electricity
• Sewage gas
  During the organic purification of sewage water, gases are released (such as methane) that can be collected and used to generate energy
• Biomass energy
  Biodegradable matter in products, waste materials, in vegetable and animal residue from agriculture and forestry and from industrial and household waste

A green certificate shows that 1.000 kWh electricity were generated from a renewable energy source. Producers who are awarded a green certificate, do not receive it on paper. The VREG includes green certificates in a central database, which can be consulted by producers on the Internet.

Producers may sell these green certificates to suppliers who still have not met their certificate obligation. If the producer is also a supplier, they can use them to meet their own certificate obligation.

CERTIFICATE OBLIGATION

Minimum electricity share based on renewable energy sources

In Flanders each electricity supplier is obliged to deliver a specific electricity volume generated from renewable energy sources. This volume corresponds to a specific minimum share of total electricity they supply to their customers. In 2002, the year in which the system became effective, the minimum share amounted to 0.8% of their supply. This will increase to 6% for supplies by 2010.

Green certificate as proof of compliance with minimum electricity share based on renewable energy sources

Suppliers are to submit a specific number of green certificates annually to the VREG before 31 March of the following year. This enables the VREG to verify whether a supplier has complied with its minimum share during that year. A green certificate shows that 1.000 kWh electricity were generated from a renewable energy source.

The number of certificates that are to be submitted by suppliers is referred to as the supplier's "certificate obligation". Annually the VREG calculates the number of green certificates that is to be submitted by each supplier in order to comply with this certificate obligation. The VREG will inform the supplier of this number, after which the supplier is to submit this number of green certificates to the VREG.

If a supplier is also a producer and therefore generates power from renewable energy sources, they can request green certificates from the VREG for their own production. If not they can purchase the green certificates on the market, from producers.

Acceptability of green certificates

Not all green certificates can be used to meet the certificate obligation. Only green certificates issued by the VREG are accepted.

Green certificates awarded for the generation of electricity based on specific waste materials (waste materials that can be recycled or processed in a superior manner), are not accepted for the certificate obligation.

Green certificates used abroad may not be submitted to satisfy the certificate obligation in the Flemish Region.

Administrative fine

If a supplier submits the correct number of green certificates, they satisfy their certificate obligation. If they submit too few certificates, they have to pay an administrative fine of 125 euros per missing certificate.

The administrative fines shall be paid to the Energy fund, which will be used, among others, to subsidise projects involving renewable energy sources.

For detailed information see Green Power Producers (Dutch)