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The interaction between Electricity Disclosure and Tradable Green Certificates

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  • Raadal, Hanne Lerche
  • Dotzauer, Erik
  • Hanssen, Ole Jørgen
  • Kildal, Hans Petter

Abstract

Guarantees of Origin (GO) and Electricity Disclosure, as defined in the EU’s Renewable Energy and Electricity Market Directives, require that European consumers should be provided with reliable information about the origin of their electricity supply. At the same time, the Renewable Energy Directive requires that support mechanisms be implemented with the aim of increasing the proportion of energy from renewable sources. The Quota System with Tradable Green Certificates (TGC) was established in Sweden as a support mechanism in 2003 and is, from 2012, planned to be extended to become a Swedish–Norwegian system. This article discusses the effects of Electricity Disclosure and the TGC system when working as two separate entities, and the potential interaction between the systems when working in tandem. It appears that Electricity Disclosure may create a customer-driven demand for renewable electricity, which can supplement the TGC system. In the long-term, GOs may thus influence the decisions made by investors in renewable energy. However, currently Electricity Disclosure has very low, or no, impact on the total production of electricity from renewable sources when compared with a stand-alone TGC system.

Suggested Citation

  • Raadal, Hanne Lerche & Dotzauer, Erik & Hanssen, Ole Jørgen & Kildal, Hans Petter, 2012. "The interaction between Electricity Disclosure and Tradable Green Certificates," Energy Policy, Elsevier, vol. 42(C), pages 419-428.
  • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:419-428
    DOI: 10.1016/j.enpol.2011.12.006
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    References listed on IDEAS

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    Cited by:

    1. Hagos, Dejene Assefa & Gebremedhin, Alemayehu & Zethraeus, Björn, 2014. "Towards a flexible energy system – A case study for Inland Norway," Applied Energy, Elsevier, vol. 130(C), pages 41-50.
    2. Darmani, Anna & Rickne, Annika & Hidalgo, Antonio & Arvidsson, Niklas, 2016. "When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 372-381.
    3. Kumar, Rajesh & Agarwala, Arun, 2013. "Renewable Energy Certificate and Perform, Achieve, Trade mechanisms to enhance the energy security for India," Energy Policy, Elsevier, vol. 55(C), pages 669-676.
    4. repec:eco:journ2:2017-04-08 is not listed on IDEAS
    5. Gottschamer, L. & Zhang, Q., 2016. "Interactions of factors impacting implementation and sustainability of renewable energy sourced electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 164-174.
    6. Kumar, Rajesh & Agarwala, Arun, 2013. "Energy certificates REC and PAT sustenance to energy model for India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 315-323.
    7. Choi, Dong Gu & Park, Sang Yong & Hong, Jong Chul, 2015. "Quantitatively exploring the future of renewable portfolio standard in the Korean electricity sector via a bottom-up energy model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 793-803.
    8. Markus Klimscheffskij & Thierry Van Craenenbroeck & Marko Lehtovaara & Diane Lescot & Angela Tschernutter & Claudia Raimundo & Dominik Seebach & Christof Timpe, 2015. "Residual Mix Calculation at the Heart of Reliable Electricity Disclosure in Europe—A Case Study on the Effect of the RE-DISS Project," Energies, MDPI, Open Access Journal, vol. 8(6), pages 1-30, May.
    9. Litvine, Dorian & Gazull, Laurent & Dabat, Marie-Hélène, 2014. "Assessing the potential demand for biofuel by combining Economics and Psychology: A focus on proximity applied to Jatropha oil in Africa," Ecological Economics, Elsevier, vol. 100(C), pages 85-95.
    10. Arthur P. J. Mol & Peter Oosterveer, 2015. "Certification of Markets, Markets of Certificates: Tracing Sustainability in Global Agro-Food Value Chains," Sustainability, MDPI, Open Access Journal, vol. 7(9), pages 1-21, September.

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