Summary of actions
The guidance explains how the following will apply:
- how rules for Guarantees of Origin for electricity generated from high-efficiency cogeneration will apply in the UK
- getting a Renewable Energy Guarantee of Origin certificate from the Gas and Electricity Markets Authority or the Northern Ireland Authority for Utility Regulation, and where certificates will be recognised
- electricity suppliers will not need to take any specific actions, both in regard to Guarantees of Origin and Renewable Energy Guarantee of Origin; generators will not need to take any action where they are selling to suppliers in Great Britain, but if generators wish to sell to EU suppliers, then they may wish to consider how they market their exports
- how the UK and European Economic Area (EEA) states will recognise installer certification for installers of certain microgeneration technologies; UK installers should seek advice on potential requirements in any EEA states in which they are operating
- the implications for government support for generating low-carbon electricity, including support schemes like Feed-in Tariffs, Contracts for Difference and the Renewables Obligation; no action is required by businesses or other stakeholders in relation to these points
Guarantees of Origin of electricity produced from high-efficiency cogeneration
Before 1 January 2021
In the UK, Combined Heat and Power Guarantees of Origin are used to track and account for electricity generated by efficient combined heat and power plants.
In the UK, regulations provide for combined heat and power Guarantees of Origin to be issued by the Secretary of State for Business, Energy and Industrial Strategy for electricity generated from combined heat and power sources in Great Britain. The Department for the Economy fulfils this function in Northern Ireland.
The powers to issue Guarantees of Origin for electricity generated from combined heat and power are devolved to Northern Ireland.
From 1 January 2021
The government will ensure that Great Britain and Northern Ireland will continue to recognise Guarantees of Origin issued in EU countries from 1 January 2021. This will allow electricity suppliers in the UK to continue to use EU Guarantees of Origin and those issued in Great Britain and Northern Ireland to comply with their fuel mix disclosure obligations and ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Guarantees of Origin.
We intend to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.
Guarantees of Origin from combined heat and power issued in Great Britain and Northern Ireland will no longer be recognised in the EU. This will mean that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Guarantee of Origin recognised by the EU.
Actions for electricity suppliers and generators
Electricity suppliers will not need to take any specific actions, as Great British, Northern Irish and EU countries’ Guarantees of Origin will continue to be recognised for their fuel mix disclosure obligations in Great Britain. Generators will not need to take any action where they are selling to suppliers in Great Britain (as Guarantees of Origin will still be issued and recognised in Great Britain). If generators wish to sell to EU suppliers, then they may wish to consider how they market their exports.
More information
The UK government has laid legislation in Parliament to amend the relevant regulations to ensure that they remain legally operable in Great Britain from 1 January 2021.
Further information will be available in this guidance on combined heat and power. The Guarantees of Origin Electricity Produced from High-efficiency Cogeneration (Amendment) (EU Exit) Regulations 2018 were also laid in Parliament on 23 November 2018.
Renewable Energy Guarantees of Origin: reporting renewable electricity
Before 1 January 2021
In the UK, Renewable Energy Guarantees of Origin are used to track and account for electricity generated by renewable energy sources.
Regulations currently provide for the Gas and Electricity Markets Authority (in Great Britain) and the Northern Ireland Authority for Utility Regulation (in Northern Ireland) to issue Renewable Energy Guarantees of Origin for renewable electricity generated in the UK, when requested to do so by generators. The Regulations also require recognition of Renewable Energy Guarantees of Origin issued in the EU.
The powers to issue Renewable Energy Guarantees of Origin are devolved to Northern Ireland.
From 1 January 2021
The government has legislated to ensure that Renewable Energy Guarantees of Origin issued in EU countries will continue to be recognised. This will allow electricity suppliers to continue to use EU Renewable Energy Guarantees of Origin, and will ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Renewable Energy Guarantees of Origin. This position will be kept under review.
Renewable Energy Guarantees of Origin issued in the UK will no longer be recognised in the EU. This will mean that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Renewable Energy Guarantee of Origin recognised by the EU.
Actions for electricity suppliers and generators
Electricity suppliers will not need to take any specific actions, as Great Britain, Northern Ireland and EU countries’ Renewable Energy Guarantees of Origin will continue to be recognised in the UK. Electricity generators will not need to take any action where they are selling to suppliers in the UK, but where generators are selling to EU suppliers, they may wish to consider how they market their exports.
More information
The UK government has amended the relevant regulations to ensure that they remain legally operable from 1 January 2021.
Further information will be provided on the Ofgem website and on the relevant GOV.UK page.
Certification of installers of certain microgeneration technologies
Before 1 January 2021
‘Microgeneration technologies’ are small-scale installations used to produce electricity and heat from renewable sources, such as heat pumps and biomass stoves. In the UK installers of these technologies are currently required to be certified under a quality assurance scheme. This certification is necessary if installers wish to apply for support under one of the low-carbon generation schemes for microgeneration technologies.
Currently, the UK is required to recognise the validity of certifications of installers for certain microgeneration technologies issued by a EEA state in accordance with criteria set out in Annex 4 of the Renewable Energy Directive 2009/28/EC. This applies to installers of the following microgeneration technologies:
- small scale biomass boilers
- biomass stoves
- solar photovoltaic systems
- solar thermal systems
- shallow geothermal systems
- heat pumps
There is a reciprocal obligation on EEA states to recognise UK installer certificates for microgeneration technologies. This is known as the mutual recognition obligation.
From 1 January 2021
The UK will continue to recognise installer certificates issued by EEA states which meet the criteria in Annex 4 of the Renewable Energy Directive. This position will be kept under review.
Installer certification issued to installers of certain microgeneration technologies in the UK will no longer be recognised in EEA states.
There will be no change in the UK to the recognition of installer certificates issued by EEA states to installers of certain microgeneration technologies.
Actions for microgeneration installers
UK installers may need certification in a EEA state to continue installing microgeneration technologies in the EEA. Requirements are likely to differ between EEA states and UK installers should seek advice on potential requirements in any EEA states in which they are operating.
There will be no change in the UK to the recognition of installer certification issued by EEA states to installers of certain microgeneration technologies.
Renewable Electricity Support Schemes: receiving support for generating renewable electricity
Before 1 January 2021
Renewable Electricity Support Schemes support low-carbon electricity generation in Great Britain under the Feed-in Tariffs and Contracts for Difference schemes, and UK-wide under the Renewables Obligation.
Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions
The Feed-in Tariffs Scheme and the Contracts for Difference scheme are funded by a compulsory levy on electricity suppliers, calculated in proportion to their market share of the GB electricity supply market.
The relevant legislation sets out that electricity supplied in Great Britain is excluded from the calculation of the levy if it complies with certain criteria (referred to in this note as ‘green import exemptions’ in the Feed-in Tariffs Order 2012 and the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015). One criterion is for the electricity to be generated in an EU country ‘other than the United Kingdom’ – which generators can demonstrate with Guarantees of Origin certificates.
Renewables Obligation – sustainability requirements for bioliquids, and solid and gaseous biomass
The Renewables Obligation supports the generation of renewable electricity in the UK. To receive support, stations using certain bioliquids as a fuel must demonstrate that the bioliquid complies with strict sustainability requirements on land use and greenhouse gas savings, in line with the EU’s Renewable Energy Directive. UK-driven sustainability requirements apply to solid and gaseous biomass.
From 1 January 2021
The government will continue to apply all requirements under both the Feed-in Tariffs Scheme and Contracts for Difference schemes and the Renewables Obligation.
Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: the government has amended the relevant legislation to remove references to the UK as an EU member State with effect from 31 January 2020.
The schemes’ administrators (Ofgem for the Feed-in Tariffs scheme, and the Low Carbon Contracts Company for the Contracts for Difference scheme) will continue to engage with electricity suppliers to inform them of their ongoing obligations under the levies funding the schemes, as well as the current relief schemes which are available to eligible energy intensive industries.
Renewables Obligation – sustainability requirements: the current sustainability requirements under the Renewables Obligation will continue to apply for bioliquids, solid and gaseous biomass.
Actions for businesses and other stakeholders
Feed-in Tariffs Scheme and Contracts for Difference – green import exemptions: electricity suppliers, consumers or any other interested parties will not need to take any action.
Renewables Obligation – sustainability requirements: EU and UK fuel suppliers, renewable electricity generators or consumers will not need to take any action.