EECS: THE DETAILED CONCEPT
Each EECS certificate is uniquely identifiable, transferable and therefore tradable, and contains standard information. For electricity, this will include:
- a unique certificate number;
- the issuer of the certificate;
- the identity of the generation plant;
- the date and time when the certificate was issued;
- the start and end date and time of energy production;
- the type of technology used to generate the electrical energy;
- the installed capacity of the generation plant; and
- an indication of whether any public support has been received and, if so, the type of support (investment support, production support, both or neither).
The Principles and Rules of Operation (the PRO) of the European Energy Certificate System (EECS) defines a certificate as representing the entire benefit of this form of energy, and relates to a specific purpose – such as energy source disclosure or compliance with an obligation etc. It also prohibits certificate holders and parties represented by them from separately claiming or conferring rights or title to any element of this benefit, and for this purpose.
Certificates are created, change owners and are eventually cancelled - made untransferrable - under a carefully developed and managed control infrastructure.
The life cycle of a certificate is as follows:
1. Issue
For every fixed unit (for electricity, this is 1,000kWh - 1MWh), a certificate is issued. This certificate takes the form of an electronic record. The record states what is being certified; the Issuing Body that issued it; the location of the production device; the technology used to produce it; the time the certificate was issued; the time the energy was generated; and whether or not it has received public support.
2. Transfer
Once a certificate has been issued, it can be transferred to another certificate holder. The certificate owner wishing to transfer ownership instructs the Issuing Body accordingly. The Issuing Body then records the transfer of ownership in a computerised registry; files and retains any documentation related to the transaction; and confirms to the parties to the transfer that it has taken place.
3. Cancellation
EECS certificates are cancelled when they are "used" - this is normally at the point when the associated energy is consumed.
At any time during the life of a certificate, its owner can instruct the Issuing Body with whom it is registered to prevent its transfer. This is known as "cancelling" the certificate and, once it has happened, the certificate can no longer be traded. Such an instruction is irrevocable, and will result in the Issuing Body transferring the certificate into a cancellation account and formally informing its owner that the certificate has been cancelled and can no longer be transferred.
Certificate owners may wish to cancel their certificates for a number of reasons. The most likely are: an electricity supplier disclosing to its customers the source of the associated electricity; a large consumer advertising its environmental credentials; or to fulfil a purpose specific to a regime - whether a country or a region - such as a governmental obligation or tax exemption.
Control Structure
Issuing and transferring of certificates takes place according to the rules set out in the PRO, as interpreted in each regime or "domain", in a "Domain Protocol". The adequacy of this interpretation is assured by the members of the AIB as a pre-condition of membership.
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