17.10.2024
On October 16, Energy Club organized an online discussion “Guarantees of Origin: What Opportunities Does the New Tool Open Up for the Market and Consumers?”
The participants of the discussion noted the growing interest in guarantees of origin in Ukraine, but emphasized the need to improve legislation and mechanisms for the functioning of the market. In particular, experts discussed the issue of recognizing Ukrainian guarantees of origin in the European Union, which would allow Ukrainian producers of “green” energy to compete in the European market.
An important topic of discussion was the role of hydropower in the system of guarantees of origin. Experts expressed different opinions on the advisability of including hydropower in the list of sources that can generate guarantees of origin.
Konstantin Taranets, Senior Manager of Ernst & Young’s Sustainability Practice in Ukraine, raised the important issue of electricity traceability in Ukraine.
“In this race to release and support a market-based tool for tracking electricity generated from water, one key point has been missed, which should be regulated in the regulatory framework,” the expert noted.
Konstantin Taranets analyzed the experience of the European Union, where there is a problem of “gray” mix – electricity that is actually produced from low-emission sources, but is not confirmed by guarantees of origin. This creates distortions in the market and makes it difficult for corporate consumers to achieve their decarbonization goals.
The expert stressed the need to unify the principles of dividing electricity sources into “green” and “gray”, as well as to clearly define the rules of the game for corporate consumers in the wholesale and retail markets.
He also drew attention to the risk of “chaos” in the market associated with the existence of two categories of electricity – traceable and non-traceable. This may restrain the development of demand for guarantees of origin and complicate Ukraine’s achievement of decarbonization goals.
The expert called for improving the regulatory framework to ensure transparency of the guarantees of origin market and stimulate the development of renewable energy in Ukraine.
