Guarantee of Origin
Electricity may only be marketed as "electricity produced from renewable sources" when it has been issued guarantee of origin. In Finland, guarantees of origin are issued by the transmission system operator Fingrid. Renewable energy sources:
- Wind power
- Solar power
- Air source heat energy
- Geothermal and hydrothermal energy
- Ocean energy
- Hydropower
- Biomass
- Landfill gas, sewage treatment plant gas and bio gas
Electricity suppliers have to disclose to their customers the production mix of electricity sold by them in the preceding year. The production mix must be disclosed in electricity bills and sales promotion material, and must be made available to electricity users. Minimum level of detail of disclosure:
- fossil sources of energy, and peat
- renewable sources of energy
- nuclear power
At the same time, electricity suppliers must disclose the carbon dioxide emissions caused by the production of electricity sold by them, and the amount of nuclear waste. In addition to total production mix, consumers can be disclosed the production mix of the electricity product purchased by them.
Electricity suppliers must always certify the origin of electricity if electricity is marketed as "produced from renewable sources of energy". The system of guarantees of origin is the only method of certification. The origin of electricity must also be certified through guarantees of origin when the electricity supplier announces that electricity it uses elsewhere in its business is produced from renewable sources, or when the marketing by the electricity user includes information indicating that the supplier uses electricity from renewable sources. Obtaining a guarantee of origin of electricity is voluntary. Alternatively, electricity produced from renewable sources can be notified by means of the national residual mix.
The goal of the system of guarantees of origin is to ensure the correctness of information disclosed on the use of renewable energy sources, and to promote the opportunity for electricity users to select electricity from renewable sources. Guarantees of origin of electricity are only issued to electricity produced from renewable energy sources.
Guarantees of origin are traded between EU and EEA countries, and electricity suppliers may also sell guarantees of origin separately in the sales of electricity produced by them.
Electricity suppliers are obliged to disclose to their customers production mix of electricity sold by them in the previous calendar year. The contribution of renewable source-based electricity with non certified origin and with unknown origin is disclosed by means of the residual mix published by the Energy Authority. In addition to the residual mix, the origin of electricity from sources other than renewable ones can be disclosed according to the actual method of production. The method of production of electricity other than renewable can be verified through internal production, a reliable contract or a certificate.
Consumers can also obtain information on the origin of sold electricity at the electricity price comparison website maintained by the Energy Authority at www.sahkonhinta.fi. The website includes a supplier-specific production mix of electricity. Electricity products, which are produced fully from renewable sources, are marked with a green leaf symbol in the service.
The Energy Authority has drawn up instructions for electricity suppliers with regard to the obligation to disclose the production mix of electricity. The purpose of the instructions is to explain the content of the disclosure obligation set out for electricity suppliers in the Act on Certification and Disclosure of Origin of Electricity.
Residual mix
In the residual mix, electricity production is divided into groups by energy source: fossil sources of energy, and peat (FOS); renewable sources of energy (RES) and nuclear power (NUC). The residual mix also includes information on the carbon dioxide emissions of electricity produced according to the residual mix, and on the amount of nuclear fuel consumed per each kilowatt-hour produced according to the residual mix.
The calculation of the residual mix is based on the production mix of electricity produced in Finland; origin-certified electricity from renewable sources is deducted from the production mix. This prevents a double calculation with regard to green electricity. The calculation of the residual mix accounts for the net imports of electricity from Russia according to Russia's electricity production mix. Imports and exports between system's internal countries are accounted for by means of the European attribute mix. The system's internal countries include EU states, excluding Malta and Cyprus, but including Norway, Iceland, and Switzerland.
As recommended by the Reliable Disclosure Systems for Europe (RE-DISS) project, the Energy Authority publishes the residual mix every year by the end of May. The first residual mix calculated by the Energy Authority applies to 2013.
RE-DISS Best Practice Recommendations Link
If the electricity producer wants to register their power plant in the system of guarantees of origin of electricity, the producer must
1. Verify the power plant's production method and the energy sources it uses.
2. Applying for approval from the registrar, i.e. Fingrid, for including the power plant in the system.
Power plant verification
The task of the verifieris to verify power plants before electricity produced by the power plant can be issued guarantees of origin. The verifier verifies the power plant's production method and the energy sources it uses. The verification performed by the verifier remains valid for five years after the issuing of the verification certificate, but the validity can also be shorter. Currently approved verifiers:
- DNV GL Business Assurance Finland Oy Ab
- Enemi Oy
- Inspecta Sertifiointi Oy
- Teqniq Wind Oy
- AFRY Finland Oy
The following verifications and decisions are parallel to verification by a verifier. The verifications and decisions are valid in the electricity origin guarantee system for five years after the issuing of the verification certificate or approval decision:
– Verification performed in the European Energy Certificate System
– Approval decision made on the basis of Section 15 the Act on Production Subsidy for Electricity Produced from Renewable Energy Sources (1396/2010)
Power plant inclusion in the origin guarantee system
The owner of the power plant shall seek inclusion approval to the system from Fingrid before the issuing of guarantees of origin may commence. The original verification certificate and its appendices must be attached to the application. Joining the system of guarantees of origin also requires that a service agreement be signed with Fingrid. Joining the system: FINGRID.
Applying for guarantees of origin
The power plant owner discloses to the registrar (Fingrid) of the electricity amount for which the guarantee of origin is applied, and the calendar month and year of electricity production. Guarantees of origin are sought from the registrar and MWh is the standard unit for the guarantee of origin.
The registrar issues the guarantees of origin on a monthly basis in accordance with the amount of energy produced. The pricing of the service related to issuing the guarantee of origin shall be reasonable. The service prices are available on the website of Fingrid.
The electricity supplier shall immediately notify the registrar when using the guarantee of origin for certifying the origin of sold electricity. The registrar shall immediately cancel the guarantee of origin once the registrar has been informed of the guarantee use. The registrar shall declare the guarantee of origin null and void if it has not been used within 12 months from the last production day of electrical energy. Guarantees of origin can also be traded between actors within EU and EEA countries. Guarantees of origin are listed on the EEX exchange.
The Energy Authority approves verifiers according to the electricity origin guarantee act. The institute shall meet the requirements set out in the act:
1) The verifier is operationally and financially independent of any parties with an indirect or direct interest in the matter,
2) The verifier's staff has good technical and professional training, and sufficiently extensive experience in tasks inducting them to the operations, and
3) The verifier has a reliable, controlled method for ensuring electricity origin's compliance with requirements, and has the appropriate instructions for operations and related monitoring. Verifier approval application.