Generating low-carbon electricity
Published 31 December 2020
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This publication is available at https://www.gov.uk/government/publications/generating-low-carbon-electricity/generating-low-carbon-electricity
This information is for:
- electricity generators and suppliers
- installers of certain microgeneration technologies
- renewable electricity suppliers and generators
It explains how low-carbon electricity are recognised and certified.
Summary
The document explains how the following apply:
- how rules for Guarantees of Origin for electricity generated from high-efficiency cogeneration apply in the UK
- getting a Renewable Energy Guarantee of Origin certificate from the Gas and Electricity Markets Authority or the Northern Ireland Authority for Utility Regulation, and where certificates are recognised
- generators do not need to take any action where they are selling to suppliers in Great Britain, but if generators wish to sell to EU suppliers, then they may wish to consider how they market their exports
- how the UK and European Economic Area (EEA) states recognise installer certification for installers of certain microgeneration technologies; UK installers should seek advice on requirements in any EEA states in which they are operating
- the implications for government support for generating low-carbon electricity, including support schemes like Feed-in Tariffs, Contracts for Difference and the Renewables Obligation
Guarantees of Origin of electricity produced from high-efficiency cogeneration
Great Britain and Northern Ireland will continue to recognise Guarantees of Origin issued in EU countries. This will allow electricity suppliers in the UK to continue to use EU Guarantees of Origin and those issued in Great Britain and Northern Ireland to comply with their fuel mix disclosure obligations and ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Guarantees of Origin.
We intend to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.
Guarantees of Origin from combined heat and power issued in Great Britain and Northern Ireland are no longer recognised in the EU. This means that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Guarantee of Origin recognised by the EU.
Actions for electricity suppliers and generators
Electricity suppliers do not need to take any specific actions, as Great British, Northern Irish and EU countries’ Guarantees of Origin continue to be recognised for their fuel mix disclosure obligations in Great Britain. Generators do not need to take any action where they are selling to suppliers in Great Britain (as Guarantees of Origin will still be issued and recognised in Great Britain). If generators wish to sell to EU suppliers, then they may wish to consider how they market their exports.
More information
The Guarantees of Origin Electricity Produced from High-efficiency Cogeneration (Amendment) (EU Exit) Regulations 2018 entered into force on 1 January 2021. Further information will be available in the guidance on combined heat and power.
Renewable Energy Guarantees of Origin: reporting renewable electricity
Renewable Energy Guarantees of Origin issued in EU countries will continue to be recognised. This allows electricity suppliers to continue to use EU Renewable Energy Guarantees of Origin, and ensures that existing supply contracts are not compromised, in so far as these contracts depend upon Renewable Energy Guarantees of Origin.
We intend to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.
Renewable Energy Guarantees of Origin issued in the UK are no longer recognised in the EU. This means that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Renewable Energy Guarantee of Origin recognised by the EU.
Actions for electricity suppliers and generators
Electricity suppliers do not need to take any specific actions, as Great Britain, Northern Ireland and EU countries’ Renewable Energy Guarantees of Origin will continue to be recognised in the UK. Electricity generators do not need to take any action where they are selling to suppliers in the UK, but where generators are selling to EU suppliers, they may wish to consider how they market their exports.
More information
The UK government has amended the relevant regulations to ensure that they remain legally operable from 1 January 2021.
Further information will be provided on the Ofgem website and on the relevant statutory instrument page.
Certification of installers of certain microgeneration technologies
The UK continues to recognise installer certificates issued by EEA states which meet the criteria in Annex 4 of the Renewable Energy Directive. This position will be kept under review.
Installer certification issued to installers of certain microgeneration technologies in the UK are no longer recognised in EEA states.
There is no change in the UK to the recognition of installer certificates issued by EEA states to installers of certain microgeneration technologies.
Actions for microgeneration installers
UK installers may need certification in a EEA state to continue installing microgeneration technologies in the EEA. Requirements are likely to differ between EEA states and UK installers should seek advice on requirements in any EEA states in which they are operating.
There is no change in the UK to the recognition of installer certification issued by EEA states to installers of certain microgeneration technologies.
Renewable Electricity Support Schemes: receiving support for generating renewable electricity
The government continues to apply all requirements under both the Feed-in Tariffs Scheme and Contracts for Difference schemes and the Renewables Obligation.
Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: the government has amended the relevant legislation to remove references to the UK as an EU member State.
The schemes’ administrators (Ofgem for the Feed-in Tariffs scheme, and the Low Carbon Contracts Company for the Contracts for Difference scheme) will continue to engage with electricity suppliers to inform them of their ongoing obligations under the levies funding the schemes, as well as the current relief schemes which are available to eligible energy intensive industries.
Renewables Obligation – sustainability requirements: the current sustainability requirements under the Renewables Obligation continue to apply for bioliquids, solid and gaseous biomass.
Actions for businesses and other stakeholders
Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: electricity suppliers, consumers or any other interested parties do not need to take any action.
Renewables Obligation – sustainability requirements: EU and UK fuel suppliers, renewable electricity generators or consumers do not need to take any action.
More information
More information will be available from Ofgem’s feed-in tariffs page and the Low Carbon Contracts Company’s page.