National: Quota system (Green Certificates)
Updated: 08.02.2019
Author: Stijn Anciaux
In Belgium, the main means of support is a quota system based on quota obligations and tradable certificates. The trade of certificates is subject to federal legislation, while the quota obligations are defined in regional regulations. Electricity suppliers shall present evidence that they have supplied a certain quota of renewable energy determined by the region (Wallonia, Flanders, and Brussels Capital) to their final consumers. To this aim, electricity suppliers are obliged to acquire green certificates (certificats verts/groenestroomcertificaten). The Federal Authority for the Regulation of Electricity and Gas (CREG) issues one certificate per MWh of green electricity (Art. 7 §3, Arrêté royal du 16 juillet 2002).
Moreover, the federal grid operator used to be obliged to purchase green certificates from electricity generators at the minimum price. Since the energy issues are of regional competence, this obligation has been limited to certain renewable energy technologies, namely offshore wind energy and hydropower (Art. 14, Arrêté royal du 16 juillet 2002). Please note that hydro-power is both a federal and a regional competence. If the installation is on state owned land, the certificates need to be purchased under the federal scheme. If they are on other land, they fall within the several regional purchasing schemes.
Eligible technologies
In general, all renewable electricity generation technologies are eligible to participate in the quota scheme in Belgium. However, only renewable electricity generation from offshore wind energy and hydropower technologies fulfilling certain conditions can benefit from the purchase obligation of the federal grid operator. Green certificates are issued under the following conditions:
- Plant operators shall be authorised to produce electricity from renewable energy sources. A plant operator is deemed authorised only if he has been issued a certificate of origin (garantie d´origine/oorsprongsgarantie) by the competent regional or federal authority (Art. 4 of Arrêté royal du 16 juillet 2002).
- In addition to this, the operators of plants that generate electricity from waves, tidal flows or wind power in Belgian waters need to be licensed by the responsible ministry (Art. 6 of Loi du 29 avril 1999).
| Wind energy | Onshore wind energy is only eligible for the regional green certificate scheme. Offshore wind energy is eligible for federal schemes only (Art. 14, Arrêté royal du 16 juillet 2002). |
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| Solar energy | Only eligible for the regional green certificate scheme. |
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| Geothermal energy | Only eligible for the regional green certificate scheme. |
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| Biogas | Only eligible for the regional green certificate scheme. |
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| Hydro-power | Eligible for the regional green certificate scheme.
Additionally, hydropower installations situated on state-owned concessions can also benefit from the federal purchase obligation of green certificates (Art. 14, Arrêté royal du 16 juillet 2002). |
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| Biomass | Only eligible for the regional green certificate scheme. |
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Amount
| Amount of quota and period of application | The green certificates allocated to offshore plants and hydropower by the CREG have a validity of five years (Art. 13, §2 Arrêté royal du 16 juillet 2002). |
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| Number of certificates according to technology | The federal electricity regulatory authority (CREG) issues one certificate per MWh of electricity produced (Art. 7 § 3, Arrêté royal du 16 juillet 2002). |
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| Minimum price per certificate | The minimum prices green certificates under the federal purchase obligation are as follows (Art. 14 Arrêté du 16 juillet 2002): - Offshore wind power stations: € 107 per MWh for electricity generated resulting from first 216 MW of installed capacity, € 90 per MWh for electricity produced from an installed capacity exceeding the first 216 MW
- Hydroelectric power stations: € 20 per MWh
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| Fees and penalty charges | There are no penalty charges concerning the green certificates of the federal authority. However, there is a system of penalty charges on the regional level for Flanders, Wallonia and Brussels. |
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Addressees
Entitled party. The entitled party is not explicitly specified.
Obligated party. All electricity suppliers are obliged to satisfy the regional quota obligations.
Procedure
Process flow | - The operators of offshore wind plants shall apply to the CREG to acquire green certificates. Certificates of origin shall be submitted together with their applications (Art. 8 Arrêté du 16 juillet 2002).
- The regulatory authority shall assess applications and, if required, request missing documents and data from the applicants within 15 days (Art. 9 Arrêté du 16 juillet 2002).
- The regulatory authority shall, within one month after receipt of a complete application, communicate to the applicant whether or not green certificates will be issued (Art. 10 Arrêté du 16 juillet 2002).
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Competent authority | The federal electricity regulatory authority (CREG) is responsible for allocating green certificates. To ensure the authenticity of these certificates, they are registered in a data base managed by CREG (Art. 13 Arrêté du 16 juillet 2002). |
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Eligibility period
The federal system operator is obliged to buy the green certificates of the renewable energy plants eligible to the federal purchase obligation for a period of 10 years from the commissioning of the plant. This obligation amounts to 20 years for offshore wind plants (Art. 14 §1 3° Arrêté du 16 juillet 2002).
Distribution of costs
| Consumers | The costs arising from the quota system are borne by the consumers (Art. 14 bis Arrêté du 16 juillet 2002). |
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| Distribution mechanism | - Plant Operator – Transmission System Operator (TSO): The TSO (federal system operator) is obliged to buy the green certificates from the eligible RE-producer at the fixed minimum price (Art. 14 Arrêté du 16 juillet 2002).
- TSO – Access holders / Distribution System Operator (DSO): The TSO forwards the surcharge of the green certificates (difference between the purchase cost of the green certificates and their gains on the market) to the access holders as well as to the DSOs (Art. 14 bis Arrêté du 16 juillet 2002).
- DSO – Final consumers: The surcharge of the green certificates is passed on to the consumers as described in the general legislation on energy (Art. 14 bis Arrêté du 16 juillet 2002).
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Belgium
