International trade stimulated by Guarantees of Origin

The introduction of Guarantees of Origin has had a clear effect on the import and export of certified green power in Europe. The total amount of issued and redeemed green power guarantees of origins has increased rapidly, reaching a peak in December 2004. This is one main conclusion from the most recent statistics overview of the international Association of Issuing Bodies (of certificates and guarantees of origin).

In most cases these issuing bodies are responsible for Guarantees of Origin and have put in place the European Energy Certificate System. EECS supports both GoO and RECS certificates and has added a level of sophistication to both GoO and to RECS (Renewable Energy Certificate System), which was founded a few years ago by market players in order to establish a transparent certificate market.

In 2004, international transfers of green power mainly concerned The Netherlands (import), Austria (import and export), Finland, Norway, Sweden, Spain, Switzerland and Denmark (exports). The Netherlands presumably caused the December peak as their support system changed at the beginning January 1st (see elsewhere in this newsletter).

Overall, 2004 saw the issuing of 26 million kWhs of green power. Almost 57% of these certificates were redeemed again (taken out of the market). Finland was responsible for half of the total exports in Europe (10 TWh). The Netherlands imported 80%, Austria some 17%. In 2003, only 0.2 TWh were exported.