1

Association of Issuing Bodies

Phil Moody (Secretary General)Phil Moody (Secretary General)Ankara – 28 April 2006Ankara – 28 April 2006

The activities of the AIBThe activities of the AIB

2

AIB servicesAIB services

Certification fundamentalsCertification fundamentals

The need for standardsThe need for standards

The EECS standardThe EECS standard

EECS Certificate ActivityEECS Certificate Activity

AIB ActivitiesAIB Activities

3

Certification FundamentalsCertification Fundamentals

4

Energy Certificate SystemsEnergy Certificate Systems

Certificate system

Supply Demand

Issuing Body

Transfer

Electricity market

Certificate market

Redemption

ComputerSystem

Issuing

Physicalflow

Contractualflow

5

Energy Certificate SystemsEnergy Certificate Systems

Certificate system

Supply Demand

Issuing Body

Transfer

Electricity market

Certificate market

Redemption

ComputerSystem

Issuing

Physicalflow

Contractualflow

6

The Need for StandardsThe Need for Standards

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Why have aWhy have a standard for certification? standard for certification?

Ac

co

un

ts

Issue

RedemptionSupplier/

government

Audit• Ongoing proof

Accredit• Initial proof

CertificatemarketTransfer

Other Issuing Bodies

Trade• Accurate transfer

Standards

Issue• Commodity design

Redeem• Prevention of double-

counting

8

Why have aWhy have a standard for standard for certification?certification?

Issue

RedemptionSupplier/

government

NationalMarketTransfer

International Markets

Challenges

• Increasing volumes

• New certificate types

• New countries joining

Diesel

• Withdrawal from market

• Recording certificate use

Redeem• Was it double-

counted?

Standards

• Certificate format

• Standard calculations

Issue• What is being

burned?• Is it a windy day?

• Inspection criteria

• Standard measurement Accredit

• Really renewable?• Can you prove it?

• Audit frequencies

• Codes of practice

Audit• Did they prove it?• Has it changed?

• Inter-registry protocols

• Standard account numbers

• Connections to exchanges

Trade• Who got it?• Did they want it?

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Request for certificates

IssuingIssuing

AU

DIT

AP

PR

OV

AL Meter readings

Issuing Body

Applicationfor

Registration CapacityEnergy sourcesEECS scheme

AccountLocationMeters

Commissioning dateetc…

Certificate

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The EECS StandardThe EECS Standard

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AIB

Market StructureMarket Structure

National Trading arrangements

Voluntary regulations

Voluntary regulations

or Legislation

Service Provision

Agreement

ServiceProvision

Agreement

Sub-contractor

Inter-IB Agreement

Standard Contract of Sale

International Rules(the “PRO”)

National implementation

(Domain Protocol)

MarketParties

Issuing Body

(member)

Liability

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RegulationRegulation

The “Pro”

(Principles & Rules of

Operation)SubsidiaryDocuments

Chapters

FactSheets

DomainScheme

DomainScheme

DomainScheme

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RegulationRegulation

Principles & Rules of

Operation

Subsidiary Documents• Assessment• Registries• Use of Agents• Change• Codes• Reviews

Chapters1. RE Guarantees of Origin2. RECS3. Disclosure4. CHP Guarantees of Origin

Fact Sheets• Types of Public Support• Member Codes• Scheme members

o GOo RECSo Disclosureo CHP

• Energy Sources / Techs• Addresses• Domain Protocol guidelines• Reviewers

Domain SchemeDomain SchemeDomain Scheme

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What is in What is in the PRO?the PRO?

1.1. Core principlesCore principles

2.2. DefinitionsDefinitions

3.3. EECS SchemesEECS Schemes

4.4. Admission & ExpulsionAdmission & Expulsion

5.5. Harmonisation MeasuresHarmonisation Measures

6.6. Processing of CertificatesProcessing of Certificates

7.7. Probity of MembersProbity of Members

8.8. Member’s Agents Member’s Agents

9.9. ComplianceCompliance

10.10. DisputesDisputes

11.11. Assessment PanelsAssessment Panels

12.12. Change proceduresChange procedures

13.13. GeneralGeneral

14.14. Chapters (per scheme)Chapters (per scheme)

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PRO - Core PrinciplesPRO - Core Principles

The Ten CommandmentsThe Ten Commandments

1.1. Uniqueness - a certificate is uniqueUniqueness - a certificate is unique2.2. Ownership - account holders own certificatesOwnership - account holders own certificates3.3. Operational reliabilityOperational reliability4.4. Protection of Account HoldersProtection of Account Holders5.5. GovernanceGovernance6.6. Access & TransparencyAccess & Transparency7.7. Cost EffectivenessCost Effectiveness8.8. CommunicationsCommunications9.9. Regulation & OversightRegulation & Oversight10.10. RecordsRecords

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EECS ActivityEECS Activity

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Summary of ActivitySummary of Activity

Since 2001Since 2001 20052005

IssuedIssued 120,729,014120,729,014 47,934,20647,934,206

ExportedExported 33,200,27533,200,275 13,690,44013,690,440

RedeemedRedeemed 59,522,70159,522,701 24,753,05524,753,055

(source AIB statistics report: 5 March 2006)

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Certificates issuedCertificates issued

Monthly Certificates Issued - by Country

0

1

2

3

4

5

6

2002 2003 2004 2005 2006

Millions

Cer

tifi

cate

s is

sued

SloveniaPolandPortugalBelg & Lux RECSUKItalyFranceSpainDenmarkGermanySwitzerlandAustriaSwedenNorwayNetherlandsFinland

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Exports

0

1

2

3

4

5

2002 2003 2004 2005 2006

Millions

UK

TR

SI

PT

PO

NL

IT

IE

FR

ES

DK

DE

CH

BEW

BE/LU

BEF

AT

NO

SE

FI

Certificates transferredCertificates transferred

Imports

0

1

2

3

4

5

2002 2003 2004 2005 2006

Millions

20

Technology blend over timeTechnology blend over time

0%

20%

40%

60%

80%

100%

Jan

Feb

Mar

Apr

May Ju

nJu

lA

ug Sep Oct

Nov

Dec Ja

nF

ebM

arA

prM

ay Jun

Jul

Aug Sep Oct

Nov

Dec Ja

nF

ebM

arA

prM

ay Jun

Jul

Aug Sep Oct

Nov

Dec Ja

nF

ebM

arA

prM

ay Jun

Jul

Aug Sep Oct

Nov

Dec Ja

nF

ebM

ar

2002 2003 2004 2005 2006

Thermal

Of fshore w ave

Onshore w ave

Offshore tidal

Onshore tidal

Photovoltaic

Other biogas

Offshore w ind

Sew age gas

Landf ill gas

Hydro

Forestry etc

Energy crops

Geothermal

Mun.solid w aste

Ind.& comm.w aste

Onshore w ind

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AIB ActivityAIB Activity

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AIB ActivitiesAIB Activities

Quarterly general meetingsQuarterly general meetings Decision making forumDecision making forum Opportunity to share views; see how different IBs operateOpportunity to share views; see how different IBs operate Shared with RECS InternationalShared with RECS International Opportunity for formal and informal exchange of viewsOpportunity for formal and informal exchange of views

Monthly Board meetingsMonthly Board meetings Strategic developmentStrategic development Operational controlOperational control

Ad hoc workgroup meetingsAd hoc workgroup meetings Development of the EECS systemDevelopment of the EECS system Enhancement and error correctionEnhancement and error correction Some biennial, others monthly or even lessSome biennial, others monthly or even less Good informal relationshipGood informal relationship

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Questions & Questions & DiscussionDiscussion

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SecretariatSecretariat12 Broadway, Amersham, HP7 0HP, United Kingdom

Tel: +44 1494 432323 / Fax: +44 1494 434888Email: secgen@aib-net.org