InTraCert

But at present, most renewable energy technologies cannot compete economically with conventional power-producing plants. Thus if the existing trend towards liberalised energy markets continues and renewables are required to compete under these pure market conditions, then the development of new renewable capacity will slowdown or even come to a halt. One model of generating additional payments to renewable technologies is to develop a separate green market. This model will facilitate the integration of renewables into the liberalised market and at the same time make it possible for these technologies to be partly economically compensated for the environmental benefits, which they generate compared to conventional power production.

The present project is especially related to the development of international trade with green certificates (International Tradable Certificates). The project is started at the beginning of year 2000 and expected to be finalised in the autumn 2001. The project is carried out in collaboration with the University of Warwick, ZEW and UAM from Germany, and headed by ECN from Holland.

The main objective of this project is to examine the potential and implications of an international tradable green certificate (TGC) system with respect to EU and national renewable energy policies as well as climate change policies. Particular attention will be paid to:

1. The possibilities of integrating TGCs for electricity, heat and gas;
2. Linking TGCs to existing market instruments of the EU and its member states, in particular carbon emission trading;
3. Analysing the potential market distortions and trade-offs and implications for renewable policies if the TGC and CET systems are not designed appropriately.

The InTraCert project is scheduled for 18 months, during which the following tasks are carried out:

1. Inventory and review.
   Inventory of national and EU policy regarding renewable energy sources (RES) (InTraCert part will focus on non-electricity options and greenhouse gases (GHG)). Review of existing and planned trading systems for RES and GHG.
2. Analysis and optimal strategies.
   Develop practical guidelines for:
   • the ways in which policy for RES and GHG emissions could be integrated;
   • design options for trading targets and penalties;
   • implementation options for an international system of tradable certificates;
   • possible synergies and conflicts inherent in policy and implementation options.
3. Workshop.
   A workshop will be organised in order to discuss the optimal strategies with Community and national policy makers and stakeholders in the field of RES and GHG trading. This should lead to an assessment of the potential for an integrated systems of a) TGC for electricity, heat and gas, and b) tradable certificates for RES and carbon emission reduction;
4. Policy recommendations and dissemination.
   The results of the previous tasks are brought together and a policy scheme for the implementation of trading systems for RES and GHG at the EU level will be set up.