Andrew Marrinson
hannoToday I published this story about double counting of renewable electricity https://industrydecarbonization.com/news/how-iceland-sold-the-same-green-electricity-twice.html a bit of a backstory: Last year I was invited to a press trip about, datacenters powered by renewable energy in iceland. So I started looking into Iceland's use of renewable energy. 🧵
There's two things to know about Iceland and Electricity: First, it uses almost 100% renewables, hydro and geothermal. Second, it produces a lot of electricity compared to its small population. It has attracted energy intensive industries, particularly Aluminium. When researching this I learned that Iceland exports renewable energy certificates - so-called guarantees of origin - to other european countries.
But something seemed odd. Everyone in Iceland - and every company in Iceland - claimed to be using 100% renewables. But if they export certificates, at least nominally they'd be using fossil or nuclear energy. Looking at the Aluminium companies, it was quite obvious: They're using more than half of Iceland's electricity and all claim it is green. And more than half of the electricity gets "exported" as GOs. Doesn't match up.
So the green electricity is counted twice. But at first, basically nobody wanted to talk to me. The european Association of Issuing Bodies was slow to answer. Landsvirkjun, the electricity copmany, said they won't comment on their customers. But eventually, I was able to confirm that this is really what's going on and I wasn't just misunderstanding things.
Now recently I learned there was a conference around these guarantees of origin in Dessau. Not far from where I live. So I went there, and things got more interesting. I learned there was a compliance assessment of Iceland due to my reporting and my questions.
I also learned that an austrian company - Verbund - had complained before about very similar problems. But not with Iceland. With Norway. Norway is an even bigger exporter of guarantees of origin.
A few days ago it was announced that Iceland's exports of guarantees of origin have been suspended. Question just remains: What about Norway?
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@industrydecarbonization And the story continues in unexpected ways: The AIB has decided that Iceland can export renewables again, although the problems have not been fixed. And I discuss the more fundamental issues with guarantees of origin. https://industrydecarbonization.com/news/double-counting-and-other-problems-with-green-electricity-certificates.html
Double Counting and other problems with Green Electricity Certificates
Double counting of green energy had recently led to a suspension of renewable electricity certificates from Iceland. Now they can be exported again – even though the problems are not solved. But that is not the only problem with renewable electricity certificates.
mklovenotcyber@hanno @industrydecarbonization Great article, thank you!
However, I fail to understand the 3 critiques on the guarantees of origin concept.
Given that there is an incentive for consumers or industries to purchase a kWh with a green origin, it shouldn't matter where that kWh has been produced, no? It also shouldn't matter when it has been produced during a fixed time frame.
In my understanding all that should count to get rid of emissions is that we somehow increase the total amount of kWh with a green origin across Europe or any other regulatory space (within that fixed time frame). It doesn't even have to be a connected physical grid.
And when there is higher demand for green energy than there are guarantees available (and they aren't counted multiple times) the market should adapt away from fossil sources.
Where am being naive here? 🤔
@mklovenotcyber @industrydecarbonization You would only create demand if there is scarcity of certificates. But that's hardly realistic. Compared to all the existing renewable production included in this system (particularly Norway), there is just a lot more old renewables than there is any demand from customers who want a green tariff.
@hanno @industrydecarbonization I see, thank you for clearing that up for me!
Graham Sutherland / Polynomial@hanno Great work!
Steinar Bang@hanno (Yes, what about Norway? Personally I think this entire green certificate thing is a scam that only serves to make some people rich, and doesn't help the world one bit, so it would be completely fine by me if Norway stopped...)
(but that's just this Norwegians opinion)
Eeeee Woooo@hanno excellent investigating and reporting. Thanks for sharing it here.