What is the system of guarantees at source in the renewable energy sector?

The system of guarantees of origin in the gas market refers to an electronic certificate attesting to renewable energy production, specifically in the case of renewable gases.

To acquire guarantees of origin in the gas market, certain steps set out in Royal Decree 376/2022 must be followed.

The steps to obtain these guarantees are detailed here:

1. Comply with the Established Conditions: It is necessary to comply with the provisions of Royal Decree 376/2022, which establishes conditions related to emissions, type of production, sustainability and other factors.
2. Objective and Transposition: The Royal Decree aims to partially transpose Directive (EU) 2018/2001 on the promotion of the use of renewable energy. It regulates the sustainability and greenhouse gas emission reduction criteria for biofuels, bioliquids and biomass fuels.
3. Sustainability Criteria: Specific sustainability and emission reduction criteria are set for biofuels, bioliquids and biomass fuels. These criteria cover aspects such as energy efficiency, minimum emission reductions and requirements for cultivated feedstocks.
4. Limits and Targets: Limits are set for the production of biofuels from food and feed crops, as well as mandatory targets for the energy content of advanced biofuels in different years up to 2030.
5. Verification and Accreditation: Ways to verify compliance with sustainability requirements are established, including a mass balance and transformation system, as well as rules for calculating the impact on greenhouse gas emissions.
6. Guarantees of Origin: The Royal Decree also regulates the system of guarantees of origin for renewable gases, creating a Census of Production Facilities and a Producers’ Committee. This system allows the transparent and secure production, transfer and cancellation of guarantees to be documented.

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Application for Guarantee of Origin:

In order to obtain the Guarantee of Origin, a process must be followed which involves applying for it in accordance with the regulations in force.

1. Application for Guarantees: Holders or their representatives can apply for guarantees of origin for energy generated in electricity production facilities from renewable sources or high-efficiency cogeneration, as well as for energy generated from the biodegradable fraction of waste. Operators or their representatives obtain several benefits from obtaining guarantees of origin. Some of these benefits include:

1. 1. Guarantees of Origin: Guarantees of Origin are an electronic accreditation that ensures that a specific amount of electricity has been generated from renewable sources, efficient cogeneration or the biodegradable fraction of waste in a given period.
   2. Transparency and Credibility: These guarantees provide transparency to the end consumer about the origin and sustainability of the energy they are purchasing, allowing them to make informed and evidence-based decisions.
   3. Promotion of Renewable Energies: By applying for and obtaining these guarantees, the production and consumption of green energy is boosted, promoting sustainable development and contributing to the reduction of greenhouse gas emissions.
   4. Access to Specific Markets: Guarantees of origin allow producers to access specific markets where energy generated from renewable sources is valued and demanded, which can open up business opportunities and differentiate themselves in an increasingly environmentally conscious market.

2. Management Instrument: The Guarantee of Origin System is the instrument through which the management and updating of the ownership and control of the guarantees granted to electricity generated from renewable sources and high-efficiency cogeneration is ensured.

3. Issuance and Management: The National Markets and Competition Commission (CNMC) is responsible for issuing and managing the guarantees of origin generated through a public information system. A book-entry system is established, accessible from the CNMC’s website, with all the information corresponding to the System.

• • Rapid dispatch: During 2021, almost 122 million guarantees of origin were issued in Spain, equivalent to 122 TWh, representing an increase of 12% compared to the previous year. In 2022, more than 116 million guarantees were issued, guaranteeing 97% of the “green energy” marketed in Spain.
  • Formality and Transparency: The CNMC accredits the production of renewable and high-efficiency cogeneration facilities through guarantees of origin. This system allows marketers to inform their customers of the origin of the electricity they sell and its environmental impact, ensuring transparency in the electricity supply.
  • Efficient Management: In total, 122 million guarantees were issued during 2021, involving 234 marketers. In 2022, 116 million guarantees were issued to 188 marketers. These figures reflect efficient management by the CNMC in the issuance and control of guarantees of origin.

4. Verification and Assignment: After verifying the information of each plant, the CNMC proceeds to issue the guarantees of origin, assigning a unique code to each one. These guarantees are recorded in the account corresponding to the production facility.

• • Management System: The CNMC manages the Guarantees of Origin System through an electronic platform that allows the recording and registration of the guarantees corresponding to the energy generated in renewable and high-efficiency cogeneration facilities.
  • Unique Code: Each guarantee of origin issued is given a unique code that identifies it and links it to the corresponding production facility. This code is essential for the monitoring and control of the guarantees.
  • Online Access: Customers can access the specific annotation of guarantees through the CNMC website by entering their CUPS (Universal Supply Point Code). This allows traceability and transparency in the process.
  • Outsourced Operation: The daily operation of the Guarantees of Origin System is outsourced and is carried out by the company Itconic, S.A., under the supervision and responsibility of the CNMC. This ensures efficient and specialised management of the system.

5. Regulatory Regulations: The regulations governing the system include Royal Decree 376/2022, which establishes the conditions related to emissions, type of production, sustainability and other factors, as well as other provisions such as Order ITC/1522/2007 and Royal Decree 413/2014.

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