This article needs additional citations for verification .(April 2014) |
In environmental policy, white certificates are documents certifying that a certain reduction of energy consumption has been attained. In most applications, the white certificates are tradable and combined with an obligation to achieve a certain target of energy savings. Under such a system, producers, suppliers or distributors of electricity, gas and oil are required to undertake energy efficiency measures for the final user that are consistent with a pre-defined percentage of their annual energy deliverance. If energy producers do not meet the mandated target for energy consumption they are required to pay a penalty. [1] The white certificates are given to the producers whenever an amount of energy is saved whereupon the producer can use the certificate for their own target compliance or can be sold to (other) parties who cannot meet their targets. [1] Quite analogous to the closely related concept of emissions trading, the tradability in theory guarantees that the overall energy saving is achieved at least cost, while the certificates guarantee that the overall energy saving target is achieved.
A white certificate, also referred to as an Energy Savings Certificate (ESC), Energy Efficiency Credit (EEC), or white tag, is an instrument issued by an authorized body guaranteeing that a specified amount of energy savings has been achieved. Each certificate is a unique and traceable commodity carrying a property right over a certain amount of additional energy savings and guaranteeing that the benefit of these savings has not been accounted for elsewhere.
In Europe, several countries have implemented a white certificate scheme or are seriously considering doing so. Great Britain started in 2002, [2] Italy in January 2005; [3] [4] France [5] [2] and Denmark a year later. Great Britain has combined its obligation system for energy savings with the possibility to trade obligations and savings. The Netherlands and Poland are seriously considering the introduction of a white certificate scheme in the near future. Spain introduced a white certificate scheme in 2023. [6]
In the UK, the Energy Efficiency Commitment (2002–2005) program required that all electricity and gas suppliers with 15,000 or more domestic customers must achieve a combined energy saving of 62 TWh by 2005 by assisting their customers to take energy-efficiency measures in their homes: suppliers must achieve at least half of their energy savings in households on income-related benefits and tax credits. In the second (2005–2008) EEC 2, energy saving targets were raised to 130 TWh suppliers, and here suppliers with at least 50,000 domestic customers (including affiliated licenses) are eligible for an obligation. The third phase runs from April 2008 to December 2012 and is intended to deliver 185 Mt CO2 lifetime savings by 2012.
Connecticut, Pennsylvania, and Nevada have adopted Energy Efficiency Portfolio Standards that require regulated utilities to meet a certain percentage of their projected power needs through energy efficiency. Utilities must meet their obligations by either reducing their consumers’ energy usage, or by purchasing energy efficiency certificates (white certificates). More states are expected to follow in the near future.
There is also a voluntary market where large corporations are purchasing energy efficiency certificates as a way of meeting their corporate commitments to reduce their carbon footprints. Sterling Planet, a market maker in renewable energy certificates (RECs) is also making a market for voluntary purchases of White Tags. Sterling Planet helped develop Connecticut's Energy Efficiency Standard and is presently the only company actively involved in this space.
The white certificate concept is an offshoot of the more mature renewable energy credit or "green tag" trading. The market for white certificates is expected to grow larger than the green tag market because it requires less government approval and expense to install energy efficiency measures in factories and commercial buildings than to construct most renewable energy projects.
One issue arising is how to avoid allowing customers to "double dip" in white tag and other incentive programs for energy efficiency, such as ISO New England's forward capacity market and the Regional Greenhouse Gas Initiative3.
The United Kingdom's Climate Change Programme was launched in November 2000 by the British government in response to its commitment agreed at the 1992 United Nations Conference on Environment and Development (UNCED). The 2000 programme was updated in March 2006 following a review launched in September 2004.
The Renewables Obligation (RO) is designed to encourage generation of electricity from eligible renewable sources in the United Kingdom. It was introduced in England and Wales and in a different form in Scotland in April 2002 and in Northern Ireland in April 2005, replacing the Non-Fossil Fuel Obligation which operated from 1990.
Renewable Energy Certificates (RECs), also known as Green tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates (TRCs), are tradable, non-tangible energy certificates in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource and was fed into the shared system of power lines which transport energy. Solar renewable energy certificates (SRECs) are RECs that are specifically generated by solar energy.
A green certificate are a tradable commodity proving that certain electricity is generated using renewable energy sources. Typically one certificate represents the generation of one Megawatthour of electricity. What is defined as "renewable" varies from certificate trading scheme to trading scheme. Usually, at least the following sources are considered as renewable:
Energy in the United Kingdom came mostly from fossil fuels in 2021. Total energy consumption in the United Kingdom was 142.0 million tonnes of oil equivalent in 2019. In 2014, the UK had an energy consumption per capita of 2.78 tonnes of oil equivalent compared to a world average of 1.92 tonnes of oil equivalent. Demand for electricity in 2014 was 34.42 GW on average coming from a total electricity generation of 335.0 TWh.
The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.
Energy Saving Trust is a British organization devoted to promoting energy efficiency, energy conservation, and the sustainable use of energy, thereby reducing carbon dioxide emissions and helping to prevent man-made climate change. It was founded in the United Kingdom as a government-sponsored initiative in 1992, following the global Earth Summit.
The Carbon Emission Reduction Target (CERT) in the United Kingdom is a target imposed on the gas and electricity transporters and suppliers under Section 33BC of the Gas Act 1986 and Section 41A of the Electricity Act 1989, as modified by the Climate Change and Sustainable Energy Act 2006
The availability and uptake of green electricity in the United Kingdom has increased in the 21st century. There are a number of suppliers offering green electricity in the United Kingdom. In theory these types of tariffs help to lower carbon dioxide emissions by increasing consumer demand for green electricity and encouraging more renewable energy plant to be built. Since Ofgem's 2014 regulations there are now set criteria defining what can be classified as a green source product. As well as holding sufficient guarantee of origin certificates to cover the electricity sold to consumers, suppliers are also required to show additionality by contributing to wider environmental and low carbon funds.
The Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC, officially Directive 2004/8/EC, is a European Union directive for promoting the use of cogeneration, popularly better known as the 'Combined Heat and Power (CHP) Directive'.
A Guarantee of Origin is an energy certificate defined in article 19 of the European Directive 2018/2001/EC. A GO certifies attributes of electricity, gas, heating and cooling, especially coming from renewable sources and provides information to energy customers on the source of their energy. Guarantees of Origin are the only defined instruments evidencing the origin of electricity generated from renewable energy sources.
Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits are a form of Renewable Energy Certificate or "Green tag" existing in the United States of America. SRECs exist in states that have Renewable Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a "solar carve-out". The additional income received from selling SRECs increases the economic value of a solar investment and assists with the financing of solar technology. In conjunction with state and federal incentives, solar system owners can recover their investment in solar by selling their SRECs through spot market sales or long-term sales, both described below.
An energy certificate or energy attribute certificate is a transferable record or guarantee related to the amount of energy or material goods consumed by an energy conversion device in industrial production. A certificate may be in any form, including electronic, and lists attributes such as method, quality, compliance, and tracking.
A feed-in tariff (FIT) is paid by energy suppliers in the United Kingdom if a property or organisation generates their own electricity using technology such as solar panels or wind turbines and feeds any surplus back to the grid. The FIT scheme entered into law by the Energy Act 2008 and took effect from April 2010. The scheme closed to new applicants on 31 March 2019.
The United Kingdom is committed to legally binding greenhouse gas emissions reduction targets of 34% by 2020 and 80% by 2050, compared to 1990 levels, as set out in the Climate Change Act 2008. Decarbonisation of electricity generation will form a major part of this reduction and is essential before other sectors of the economy can be successfully decarbonised.
The Green Deal was a UK government policy initiative that gave homeowners, landlords and tenants the opportunity to pay for energy efficient home improvements through the savings on their energy bills from 2012 to 2015. At the heart of the Green Deal was the rule that savings on bills would exceed the cost of the work. By meeting this 'Golden Rule', consumers were able to receive energy savings without direct cost. Consumers then paid back the cost of such improvements through the expected savings in their energy bills. However, there is no guarantee that the eventual savings made by consumers will match the cost of the loans they take out to make the improvements and industry bodies recognised there was a risk consumers could end up out of pocket.
The Energy Company Obligation (ECO) is a British Government programme. It is designed to offset emissions created by energy company power stations. The first obligation period ran from January 2013 to 31 March 2015. The second obligation period, known as ECO2, ran from 1 April 2015 to 31 March 2017. The third obligation period, known as ECO3, ran from 3 December 2018 until 31 March 2022. The fourth iteration, ECO4, commenced on 1 April 2022 and will run until 31 March 2026.
The Energy Efficiency Directive 2012/27/EU is a European Union directive which mandates energy efficiency improvements within the European Union. It was approved on 25 October 2012 and entered into force on 4 December 2012. The directive introduces legally binding measures to encourage efforts to use energy more efficiently in all stages and sectors of the supply chain. It establishes a common framework for the promotion of energy efficiency within the EU in order to meet its energy efficiency headline target of 20% by 2020. It also paves the way for further improvements thereafter.
National Action Plan for Climate Change (NAPCC) is a Government of India's programme launched in 2008 to mitigate and adapt to the adverse impact of climate change. The action plan is designed and published under the guidance of Prime Minister’s Council on Climate Change (PMCCC). The 8 sub-missions aimed at fulfilling India's developmental objectives with focus on reducing emission intensity of its economy. The plan will rely on the support from the developed countries with the prime focus of keeping its carbon emissions below the developed economies at any point of time. The 8 missions under NAPCC are as follows:
The Great British Insulation Scheme (GBIS) is an initiative launched by the UK government to enhance efficient energy use in residential properties. The scheme initially consulted on by the Department for Energy Security and Net Zero labelled as ECO+, reflects the UK's efforts towards environmental sustainability and the reduction of household energy costs.
{{cite web}}
: CS1 maint: archived copy as title (link)