Flanders: Quota system (Groenestroomcertificaten)

Updated: 08.02.2019

Author: Stijn Anciaux

The region of Flanders uses a quota system and a certificate trading scheme to support renewable energy (Article 7.1.10 in conjunction with Article 7.1.1, Article 7.1.5 § 1 2° Energy Decree). In general, all renewable energy generation technologies are eligible for the quota system (Article 7.1.1 in conjunction with Article 7.1.3 Energy Decree, Article 6.1.16 Energy Regulation). The green electricity certificates are issued by the Flemish Regulator of the Electricity and Gas Market (VREG). The amount of electricity to be produced for one certificate varies across technologies and is based on a technology-specific banding factor. This so-called banding factor accounts for the specific technology costs and efficiencies for amortisation. Thus, one certificate is not necessarily equal to 1 MWh. The grid operators are obliged to meet their quota obligations, i.e. present green certificates for the quota defined by law, every year by 31 March (Article 7.1.10 §1 in conjunction with Article 7.1.5 § 1 2° Energy Decree).

Eligible technologies

In general, Flanders supports all renewable energy generation technologies (Article 7.1.1. in conjunction with Article 7.1.3 Energy Decree, Article 6.1.16 Energy Regulation). Green certificates for plants generating more than 200 kWh of electricity from renewable sources can only be issued if an inspection report of the installation is submitted to the Flemish Energy Agency (Article 6.1.4 Energy Regulation). Small installations with a capacity lower than 10kW are no longer eligible for green certificates.

Wind energy

Eligible (Article 6.1.16 §1 2° Energy Regulation). The certificates for offshore wind energy are issued by the Federal Authority for the Regulation of Electricity and Gas (CREG). 

Solar energy

PV installations are eligible (Article 6.1.16 § 1 1° Energy Regulation).

Geothermal energy

Eligible (Article 6.1.16 § 1 5° Energy Regulation).

Biogas

Both biogas from biological fermentation of organic substances in fermentation plants (Article 6.1.16 § 1 6° a) Energy Regulation) and landfills (Article 6.1.16 § 1 6° b) Energy Regulation) are eligible. Moreover, biogas from liquid biomass has to fulfil sustainability criteria. 

Hydro-power

Plants are eligible if their capacity is less than 10 MW (Article 6.1.16 § 1 3° Energy Regulation).

Biomass

Eligible (Article 6.1.16 § 1 7° Energy Regulation).

Amount

Amount of quota and period of application

The quota is calculated according to a formula set by law (Article 7.1.10 § 2 Energy Decree)

The factor “Gr” is determined by law. It is equal to:

  • 0.14 in 2013
  • 0.155 in 2014
  • 0.168 in 2015
  • 0.18 in 2016
  • 0.23 in 2017
  • 0.205 in 2018
  • 0.215 in later years

Since 31 March 2017, the factor Ev is decreased for intensive industries (Art. 7.1.10. §3 Energy Decree):

  • By 47% if the total amount of electricity consumed in the year n-1 was between 1,000 MW and 20,000 MW
  • By 80% if the total amount of electricity consumed in the year n-1 was between 20,000 MW and 100,000 MW
  • By 80% if the total amount of electricity consumed in the year n-1 was between 100,000 MW and 250,000 MW
  • By 98% if the total amount of electricity consumed in the year n-1 was above 250,000 MW

Adjustment of quotas

According to current legislation, the quota obligation will be in force until 2021 (Article 7.1.5 §4 Energy Decree).

Number of certificates according to technology

The green electricity certificates are issued by the Flemish Regulator of the Electricity and Gas market (VREG). The amount of electricity to be produced for one certificate is calculated by multiplying 1 MWh with the corresponding banding factor of the respective technology (Article 7.1.4. §1 Energy Decree). The banding factor is technology specific and represents the ratio between the “onrendabele top” (amount of € necessary per MWh for amortisation) and “banding denominator” (fixed to € 97).

The banding factor is communicated by the Flemish Energy Agency (VEA) to the Flemish government and the Minister of Energy before 30 June each year (Art. 7.1.4/1. §1 Energy Decree).

Amount of kWh per 1 GSC for installations erected after 01.08.2018

Photovoltaic energy: 

Plant capacity

banding factor

banding factor with citizen participation (+200 participating)

≤ 10 kW

not eligible

not eligible

> 10 and ≤ 40 kW

0.684 (1461 kWh)

0.681 (1468 kWh)

> 40 and ≤ 250 kW

0.731 (1367 kWh)

0.727 (1375 kWh)

> 250 and ≤ 750 kW

0.742 (1347 kWh)

0.737 (1356 kWh)

( ) : Amount of kWh per 1 GSC 

Onshore wind:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 4 MW

0.611

1636 kWh)

Biogas:

fermentation of manure and / or agriculture related products:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 5 MW

1

1,000 kWh

> 5MW - 20 MW

1

1,000 kWh

vegetable, fruit and garden waste:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 5 MW

1

1,000 kWh

> 5MW - 20 MW

1

1,000 kWh

recovery of landfill gas:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 5 MW

0.562

> 5MW - 20 MW

0.398

fermentation of sewage water treatment:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 5 MW

0

3,040 kWh

> 5MW - 20 MW

0

other:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 5 MW

1

1,000 kWh

> 5MW - 20 MW

1

1,000 kWh

Biomass:

Biomass (liquid and solid):

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 20 MW

1

1,000 kWh

Biomass (households and commercial):

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 20 MW

0

20,161 kWh

Waste based on biomass:

Plant capacity

banding factor

Amount of kWh per 1 GSC

≤ 10 kW

not eligible

not eligible

≤ 20 MW

0.620

1,131 kWh

Project developers have to contact the Flemish Energy Agency (VEA) if they want to add a representative project category to the above list (Art. 6.2/1.2.Energy Regulation).

Minimum price per certificate

For installations with a start date of 1 January 2013 and later, the minimum price per certificate is € 93 (Art. 7.1.6 § 1. Energy Decree).

Fees and penalty charges

Electricity suppliers that fail to meet their quota shall pay a fine of €100 for every missing certificate (Article 13.3.5 §1 1° Energy Decree). 

Annual average certificate price

The most recent average certificate market price is from April 2017 – March 2018, when it was €89.03. 

Addressees

The entities obliged to purchase green certificates are the distribution grid operators or ELIA, the transmission grid operator, depending on whose grid a given plant is connected to. The grid operators shall meet their quota obligation as defined by law by presenting green certificates to the Flemish regulatory authority (VREG) by 31 March (Article 7.1.10 §1 in conjunction with Article 7.1.5 § 1 2 Energy Decree). ELIA has been obliged to satisfy a quota since 1 July 2003; however, its obligation only applies to plants installed less than 10 years ago. In the case of offshore wind power plants, only ELIA, the transmission grid operator, is obliged to purchase certificates. The persons benefiting from the quota system are the operators of renewable energy plants, as they may sell their green certificates to the grid operators at a guaranteed price (Article 7.1.10 in conjunction with Article 7.1.5 § 1 2° Energy Decree).

Procedure

Process flow

    • An operator of a renewable energy plant who would like to receive green certificates for the electricity he produced shall file an application with the Flemish Electricity and Gas Regulator (VREG) (Article 6.1.2 §1 Energy Regulation). Plants generating more than 1,000 kWh of electricity from renewable sources shall be certified by an authorised body (Article 6.1.4 Energy Regulation).
    • The VREG shall assess every application for completeness and inform the applicant about missing documents and data within 2 months after receipt of an application (Article 6.1.2 §1 Energy Regulation).
    • The VREG shall, within two months after receipt of a complete application, communicate to the applicant whether or not he/she has the right to participate in the certificate scheme (Article 6.1.2 §2 Energy Regulation).
    • Green certificates are allocated per month considering the amount of electricity (kWh) that need to be produced per technology in order to receive 1 certificate (Article 6.1.7 Energy Regulation in conjunction with Article 7.1.1. §2 Energy Decree). All MWhs not accounted for in one month will be considered in the following month (Article 6.1.7 Energy Regulation).

    Competent authority

    The Flemish Ministry of Finance, Budget and Energy defines the quota obligations and the allocation process of green certificates. The Flemish Electricity and Gas Regulator (VREG) is responsible for the award of certificates to the plant operators (Article 7.1.1 Energy Decree). Green certificates awarded for offshore wind power generation are issued by the Federal Authority for the Regulation of Electricity and Gas (CREG).

    Distribution of costs

    Consumers

    According to information from the Flemish Electricity and Gas Regulator (VREG), consumers bear the costs of the quota system in Flanders.

    Distribution mechanism

    Distribution grid operators buy the certificates and pass the costs to consumers via higher prices (Art. 7.1.15 Energy Decree).

    Belgium
    Electricity
    Heating & Cooling
    Transport

    Further information

    • Vlaamse Regulator van de Elektriciteits- en Gasmarkt (VREG) – Flemish Electricity and Gas
    • +32 2 55 313 79
    • VREG website
    • info(at)vreg.be

    Basic information on legal sources