Guarantees of Origin Scheme 30 th November 2011

Guarantees of Origin – a brief history • EU Directive 2001/77/EC - first mentioned GOs • Replaced by the Renewable Energy Directive 2009/28/EC • Legislation transposed on the 28 th of March 2011 • S. I. (Statutory Instrument) 147 of 2011 • SEMO named as the Issuing Body for Ireland • CER tasked with developing the Supervisory Framework 2

What is a Guarantee of Origin? “Guarantees of origin issued for the purpose of this Directive have the sole function of proving to a final customer that a given share or quantity of energy was produced from renewable sources. ” - Section (52), DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009 3

Renewables Directive • The sole purpose of GOs is Fuel Mix Disclosure • There is no connection between national targets and FMD • GOs do not follow the physical flow of energy 4

What is a Guarantee of Origin? • Standard size of one megawatt hour (1 MWh) • Issued on request of the Generator • Guarantee that electricity has been produced from a renewable source 5

Guarantee of Origin – Renewable Sources Examples of renewable sources: • • • Wind Solar Ocean Energy Biomass Hydropower Landfill Gas Aerothermal Geothermal Hydrothermal 6

Fuel Mix Disclosure – Interim Solution • SEMO completes the calc on an annual basis • All Island Fuel Mix • Suppliers submit declarations and ‘claim’ generation (Both in-market and out-of-market) • Interim solution for 2008, 2009, 2010 • For these years FMD was based on physical flows 7

FMD 2010 Breakdown 8

Fuel Mix Disclosure – Output • SEMO provides an individual Fuel mix breakdown to Suppliers • And All Island Mix breakdown • Display on their customers’ bills • Consumers may use this comparison when deciding which supplier to choose 9

Fuel Mix Disclosure – Enduring Solution • Enduring solution to be in place next year for 2011 calculation • Next year Suppliers will be able to declare Irish GOs • GOs do not follow physical flow • Deadline for Supplier Submissions for Disclosure Period 2011 is the 31 st March 2012 10

Guarantee of Origin - Status • Used • Deemed to be used in a disclosure period in which the GO is counted for FMD purposes • A GO can only be used once • Active • 12 months from the date of production • Can be used in any disclosure period in which it is active e. g. a GO issued on 1 st of June 2012 can be used in FMD 2012 or FMD 2013 11

Guarantee of Origin - Status • Expired • Expires after 12 months • Can still be used or transferred after expiration • Cancelled • When used in FMD • If not used in final FMD Disclosure Period, into Residual Mix • Cancelled GOs cannot be used or transferred again 12

GO Scheme – Business Processes SEMO will administer the following processes: • • • Registration Request Issuing Transfer Import Revocation 13

GO Scheme – Business Processes 14

GO Calendar • Some processes are ad hoc • Others are quarterly Quarter End Date Quarter 1 31 st March Quarter 2 30 th June Quarter 3 30 th September Quarter 4 31 st December 15

GO Registration • Download from the SEM-O website • Pack for Generators, Pack for Suppliers • ‘Enable Macro’ document available on the website • Pack must be fully completed 16

SEMO Website - GOs 17

GO Registration – Authorised Users • Nomination of Authorised User (Internal) • Nomination of External Agent (External) • Can only have either an internal or external authorised user to Request, Issue, Transfer • Supplier can act as an External Agent • Password provided must be 8 characters • Authorised Users and Passwords will be logged 18

GO Registration • Once completed email to guaranteesoforigin@sem-o. com • Acknowledgement email with Ref Number will be sent 19

GO Registration • Within SEM Generators – details checked internally • Out of SEM Generators – details checked with DSO • Suppliers – details checked internally 20

GO Registration • ID will be issued, this is separate to any market IDs • This ID will be used for all correspondence relating to GOs and FMD • Central registry will contain these IDs • SEMO asks if participants can confirm receipt of this ID 21

GO Registration Request Submit Registration Pack Receive Input Information Validate Verify business details Record Enter Participant details to GO registry Verify Within-SEM Generator details Issue FMD IDs Verify Supplier Unit details Check Registration Pack for completeness Contact DSO for necessary verifications Contact Participant 22

GO Registration • Enduring Registration Process will take 21 Working Days to complete • Need to have Initial Registrations complete by the end of 2011 • 19 Working Days until Xmas!!! 23

GO Requests • Ad Hoc process • Generator sends request, receives Ref Number • Two validation checks • 1) Is the Generator registered for the scheme? • 2) Are template details correct? • 2 WDs for this validation • Except for 10 WDs before end of quarter, extended to 5 WDs 24

GO Requests • Requests can be for more than 1 MWh, varying Start/End dates • Verified Requests added to the request log • Invalid Requests rejected • SEMO will be backdating GOs for 2011 • Start sending in requests once registered for the scheme 25

GO Requests Request Verify Record Submit GO Request Check user details Update request log Send Acknowledgement Check Generator details 26

GO Issuing • Quarterly process • Metered Generation (MG) pulled from SEM Market Systems (within market) and requested from MRSO (out of market) • 10 Working Days after end of quarter 27

GO Issuing • Cross check Requests against MG • a) If Requested MWh <= MG – GOs Issued • b) If Requested MWh > MG – GOs Rejected e. g. Request MWh = 10 MG MWh = 9 Authorised User will be informed that 9 are available • Request can be resubmitted with revised values • Resent within 2 WDs 28

GO Issuing • Electronic document as per the S. I. • Each certificate has its own unique ID • Certificates emailed to the Authorised User (20 WDs after the end of the quarter) • Authorised User calls SEMO with their password • The file password is then given • Password is randomly generated • Certificates can then be accessed 29

GO Issuing – Format of a GO • Will be in XML format 30

Issue GO Certificates Request Verify Request MRSO data Upload request log Extract Market Systems data Validate requests Communicate Send rejection Issue Update GO database Issue GO certificates Consolidate data 31

GO Transfer • Ad hoc process (need to be completed by 31 st of March 2012 for 2011 FMD) • Current holder’s Authorised User sends in a Transfer Request • Details of the New Holder (GO Participant) • SEMO verifies the details and updates the Central Registry • New updated certificates sent to New Holder 32

GO Transfer 33

GO Transfer - Exports • Export transfers are included here – need MS • New certificates not sent on – registry updated as ‘Exported’ 34

GO Transfers Request Verify Record Communicate Receive Input Information Check GO details Update database Send rejection Check user details Check account details Contact export Member State Send confirmation 35

Renewables Attributes Transfer • Quarterly process • Supplier advises which Generators they have PSO PPA agreements with • SEMO will be checking PSO lists • However, need as much info as possible • Attributes will be assigned automatically every quarter • If details change, must advise SEMO 36

GO Revocation • Ad hoc – Only where SEMO have grounds to suspect fraud; rules set out in S. I. • SEMO will advise the CER of concerns, however final decision will be taken by SEMO • Post notice to current holder – must be written notice as per S. I. • Previous holders will be advised, if contact details are available • Update Central Registry with ‘Revoked’ 37

GO Revocation Contact CER Contact Participant Update Database 38

GO Imports • Ad hoc process • Advise SEMO ASAP – will need to contact Member States to verify validity • If no response from MS after 10 WDs - rejected • Minimum details required – Static Data • SEMO will work on building contacts within Member States 39

GO Imports Receive Notice Contact Member State Update Database Send Confirmation 40

Conclusions • • • Registration process to be completed Requests accepted ad hoc Issuing once per quarter Transfers accepted ad hoc Imports accepted ad hoc Revocation – as required 41

Next Steps • • Registrations to commence asap Once registered send through requests Backdating to commence for 2011 in January FMD MOST to be held in January – All Island 42

Next Steps 43

Q&A Thank you for your attention! 44