Flanders: Quota system (CHP certificates)
Updated: 08.02.2019
Author: Stijn Anciaux
In Flanders, combined heat and power (CHP) plants producers are eligible for CHP certificates. The amount of CHP certificates granted for 1,000 kWh of primary energy saved in a qualitative CHP-facility compared to a situation in which the same quantity of electricity or heat were produced separately is multiplied with the respective banding factor (Art. 7.1.2. Energy Decree). The certificates are issued by the Flemish Regulator for Electricity and Gas (VREG) and are registered in a central database. CHP certificates can be sold to electricity producers that need to fulfil their certificate obligations.
Eligible technologies
Regarding the regulation for CHP plants, plants generating both electricity and heat from renewable energy are eligible for CHP certificates (warmtekrachtkoppeling). The amount of CHP certificates granted for 1,000 kWh of primary energy saved in a qualitative CHP-facility compared to a situation in which the same quantity of electricity or heat were produced separately is multiplied with the respective technology-specific banding factor (Art. 7.1.2. §2 Energy Decree). This so-called banding factor accounts for the specific technology costs and efficiencies for amortisation and is determined by VREG. Accordingly, the amount of heat to be produced for 1 certificate varies across technologies. The heat has to be produced within the Flemish territory (Art. 6.2.3. Energy Regulation). The left amount of MWh is transferred to the next month (Art. 6.2.7. Energy Regulation). The calculation of primary energy saving of CHP only takes the heat into consideration that is used as heat source only and is not used for the further production of electricity (nuttige warmte). (Art. 6.2.10. §3 Energy Regulation). For CHP plants using renewable energy, the electrical efficiency is equated to 42% (biogas), 42.7% (liquid biofuel), 34% (wood) and 25% (other solid biomass) (Art. 6.2.10. §8 Energy Regulation). A CHP certificate can be transferred only once to the grid operator (Art. 7.1.7. §1 Energy Decree) in the framework of certificate obligation (Art. 7.1.5. §2 Energy Decree).
| Biogas | Eligible if used in CHP plant. |
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| Biomass | Eligible if used in CHP plant. |
Amount
| Amount of quota and period of application | The quotas are calculated according to a formula set by law (Article 7.1.11 § 2, Energy Decree). According to the law, the amount of CHP certificates is calculated on the basis of the following formula: Cw = W x Ev The amount of CHP certificates (Cw) to be presented is calculated by multiplying the total amount of electricity produced (MW) in the year n-1 (Ev is defined as) by the factor “W”, being:
From 31 March 2017 onwards, exemptions for energy intensive industries have been introduced (reduction of Ev) (Art. 7.1.11. §2/1 Energy Decree). From 31 March 2017, Ev is reduced by:
From 1.1.2013, the right to receive green certificates is determined by the duration of the amortisation period used for the calculation of the “onrendabele top” (unprofitable peak) (Art. 7.1.2 §2 Energy Decree). For more information see www.energiesparen.be/monitoring-en-evaluatie/rapporten | ||||||||||||||||||||||||||||||||||||||||||||||||
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| Adjustment of quotas | According to NREAP, the quota increased to 5.23% in 2012 and shall remain at this level the following years. The Flemish Energy Agency VEA is in charge of monitoring the amount of certificates available on the market (Art. 7.1.11. §3 Energy Decree) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Number of certificates according to technology | The amount of heat produced per CHP certificate is technology specific depending on the respective banding factor. Amount of kWh per 1 GSC for installations erected after 01.04.2018 Biogas: fermentation of manure and / or agriculture related products
vegetable, fruit and garden waste
Biomass solid biomass
liquid biomass
biomass waste
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| Minimum price per certificate | The minimum support is €27 per transferred CHP certificate. From 1 January 2013 onwards, new installations receive the minimum price of €31 per certificate (Art. 7.1.7. § 1 Energy Decree). | ||||||||||||||||||||||||||||||||||||||||||||||||
| Fees and penalty charges | The penalty charge per missing certificate after 31 March 2015 amounts to €38 (Art. 13.3.5. §1 2° Energy Decree). |
Addressees
CHP plant operators. Plant operators can sell their certificates as a pay-off for their energy saving commitments.
Procedure
Process flow | The application for granting CHP certificates has to be sent to the Flemish Energy Agency (VEA). The application entails the complete filled in application document determined by VREG depending on energy source used and installation capacity (Art. 6.2.2. §1 1° – 5° Energy Regulation). If the application is incomplete, the VEA will notify the applicant in writing within 2 months, stating which documents are missing. If the application concerns an installation that has not yet started operation, a more detailed letter is written stating an explanation of the required measurements (Art. 6.2.2. §1 5° Energy Regulation). Within one month after a complete application has been received, VEA decides on the matter (Art. 6.2.2. §2 Energy Regulation). Within 5 working days, the applicant is informed about the decision (Art. 6.2.2. § 3 Energy Regulation). In order to be eligible for CHP certificates, the following requirements need to be fulfilled: the installation needs to operate within the Flemish territory, fulfils the requirements for qualitative CHP installations (see Annex I Energy Regulation). if the installation has a capacity higher than 1 MW, it requires valid inspection report (renewal every 2 years) (Art.6.2.3. Energy Regulation). The first CHP certificates are granted on the first day of the month after the application was approved depending on the amount of CHP savings (Art. 6.2.7. Energy Regulation). |
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Competent authority | Flemish Energy Agency (VEA) |
Distribution of costs
| Consumers | According to information from the Flemish regulatory authority (VREG), the consumers bear the costs of the quota system in Flanders. |
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