Spain approves procedure for the management of the System of Guarantees of Origin of Gas from renewable sources

On Monday 31st, the Spanish Government through the Official State Gazzete, approved the procedure for the management of the system of guarantees of origin of gas from renewable sources. The procedure was presented by the Technical Manager of the Gas System-Enagás, back at the end of July, it has been approved and now Enagás has six months to put it in place. Enagás will be the responsible as long as the Energy Ministry do not have resources to carry out these functions.

Thanks to this system, each MWh of gas of fully renewable origin will lead to the issuance of a guarantee of origin with information on where, when and how the gas was produced. The guarantees of origin will certify the volume of gas and its quality and will differentiate between hydrogen produced from renewable energy, biomethane, biogas and other gases and covers any renewable gas produced and consumed, whether on-site, self-consumed and whether or not injected into the pipeline network.

The procedure defines the fundamental operating principles, protocols, rights and obligations of the system applicable to renewable gas production and consumption facilities. It defines the elements necessary for: i) the operation of the system; ii) the requirements for registration, maintenance and deregistration in the system; iii) the supervision and auditing of production facilities; and the iv) administration of the system which includes the transfer of guarantees of origin and the measurement and quality procedure.

The main steps within the procedure for the management of the system of Guarantees of Origin are the following:

  1. Installation Register. The application form shall be made through the Guarantees of Origin Platform, on a form for holders. 
  2. Administration of the System of Guarantees of Origin. A guarantee of origin corresponds to the net production of 1MWh of renewable gases. The guarantee of origin is an unalterable electronic document with a unique identification number and three parameters associated that would be modified for its management: “Holder”, “Status” and “Transaction Codes”.
  3. Calculation of Guarantees of Origin. This calculation is based on the net production of renewable energy which is equivalent to the gross production of the production facility minus the non-renewable ancillary consumption. The calculation of the net production shall be performed on a monthly basis.
  4. Transfer of guarantees of origin. The transfer of Guarantees of Origin is the process by which a Guarantee of Origin is transferred from the account of one holder to the account of a second holder. The transfer would take place if an agreement has been previously reached between the two holders. This agreement will be materialised by the acceptance of the transfer by both of them through the Guarantees of Origin Platform. This Platform will also have a bid tool accessible to any holder where holders can anonymously express their interest in buying or selling Originating Collateral.
  5. Redemption of Guarantees of Origin. Redemption is the process that associates/links energy consumption and guarantees of origin, giving renewable origin to the energy consumed. There are three types of redemption:
    1. Redemption by consumption point
    2. Redemption by supply portfolio
    3. Redemption by bunkering/vehicular gas operations.
Source: BOE & Authors