Abu Dhabi: Energy Department Issues Regulatory Policy for Clean Energy Certificates
Abu Dhabi’s Energy Department has announced it has launched a Regulatory Policy for Clean Energy Certificates.
The Policy sets out the regulations and principles for implementing a clean energy certificates scheme in the Emirate.
It follows news last week that the Department has been granted powers to issue these certificates.
It is aimed at helping to reduce the carbon footprint of power generation in the Emirate and providing a reliable accreditation system.
The Clean Energy Certificates scheme has been modelled on the internationally recognised attribute tracking system for renewable energy certificates developed by the International Renewable Energy Certificate Standard Foundation (I-REC Standard).
The I-REC Standard is responsible for providing a single central registry platform and the I-REC Registry will keep and update records of the full lifecycle of ownership and use of the issued Clean Energy Certificates. It will record all trading transactions, verify claims and ensure there is no Clean Energy Certificate double counting.
The Emirates Water and Electricity Company will act as a Single Registrant for the electricity injected into the grid from DoE licensed generation entities.
They will also ensure all generation plants producing clean energy in the Emirate are listed in the I-REC Registry. Businesses or consumers who want to obtain a clean energy certificate can act as Participants but will have to open an account in the I-REC Registry platform.
The certificates will be issued in units of 1 MW/h after receiving a request from the Single Registrant. The Participants can then purchase certificates and allocate beneficiaries.
Clean Energy Certificates are voluntary tradeable financial instruments which certify the purchase of a specific amount of electricity which has been generated from a clean energy source. Once the solar or nuclear energy is fed into the grid, the Clean Energy Certificates can be traded as credits to claim the environmental and social benefits of low carbon energy consumption.
Anyone can act as a Participant and can purchase the certificates and sell them in whole or in part to end customers. The Single Registrant can also act as a Participant if they are approved by the Energy Department. This allows anyone to benefit from the system, regardless of their level of consumption. Anyone can buy certificates which guarantee the electricity they consume does not emit carbon.
Unlike I-REC systems in other regions, the Energy Department will not charge for acting as a local Issuer.
Also reported in Alroeya on 29 August 2021. For full story, click here.
To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.
Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.