Wednesday, September 22, 2021

Abu Dhabi Department of Energy Issues Regulatory Policy for Clean Energy Certificates

  • As the accredited I-REC local issuer, DoE is the entity
    formally authorized to issue Clean Energy Certificates within the Emirate of
    Abu Dhabi
  • EWEC will act as a single registrant for renewable and clean
    electricity injected into the grid from DoE licensed generation entities
  • Solar and nuclear clean energy certificates will be available
    for purchase from EWEC on a quarterly basis

Abu Dhabi, August 29, 2021 – The Abu Dhabi Department of Energy (DoE)
has launched a Regulatory Policy for Clean Energy Certificates as part of its
commitment to drive the transition to a sustainable decarbonized energy sector and
marking a foundational step to establish a market for trading renewable and
nuclear energy atributes in the emirate.

The Policy sets out the regulations and principles for
implementing a clean energy certificates scheme in Abu Dhabi, as a measure to help reduce the carbon
footprint associated with power generation while providing a reliable
accreditation system that caters to the growing appetite among corporate
businesses and households to contribute to the fight against climate change.

Since electricity generated from clean energy sources is
indistinguishable from that produced by any other source, such an attribute
tracking system is required to validate electricity providers’ and consumers’
claims of using low or zero-emissions electricity, thereby reducing their
carbon footprint.

In order to support credible clean energy usage and delivery
claims, DoE designed the Clean Energy Certificates scheme based on the
internationally recognised attribute tracking system for renewable energy
certificates developed by the International Renewable Energy Certificate
Standard Foundation (I-REC Standard). An agreement has been signed between both
parties, appointing DoE as the accredited I-REC local issuer for the Emirate of
Abu Dhabi.

Four key parties have been identified as key enablers for
implementing Abu Dhabi’s Clean Energy Certificates scheme.  The DoE is the ‘Issuer’, the entity
formally authorised to issue Clean Energy Certificates within the Emirate of
Abu Dhabi while I-REC Standard is responsible for providing a single central
registry platform, the I-REC Registry, where records of the full
lifecycle of ownership and use of the issued Clean Energy Certificates are held
and maintained. It records all trading transactions, verifies claims, and
ensures there is no Clean Energy Certificate double counting.

Emirates Water and Electricity Company (EWEC) will act as a Single
Registrant
for the electricity injected into the grid from DoE licensed
generation entities. EWEC will ensure that
all generation plants producing clean energy in Abu Dhabi are listed in the
I-REC Registry. Businesses or consumers who wish to obtain a clean energy
certificate can act as Participants, opening an account in the I-REC
Registry platform. The certificates are issued by DoE in units of 1 MW/h upon
receiving a request from the Single Registrant. The Participants can then purchase
certificates and allocate beneficiaries.

His Excellency. Eng. Mohamed Bin Jarsh Al Falasi, commented: “With
heightened alerts about the impacts of climate change and an increased
commitment to environment protection by customers and major companies who want
their practices to reflect their social responsibility, our Clean Energy
Certificates offering is timely and will support end-users in their
sustainability goals. We are delighted to launch the
Regulatory Policy for Clean Energy Certificates to support the overall integrity of
measuring, reporting, and accreditation requirements for the issuance and
management of such certificates while ensuring alignment with international
practices and additional domestic criteria.”

Clean Energy Certificates are
voluntary tradeable financial instruments which certify the purchase of a
specific amount of electricity that has been generated from a clean energy source. Once
the solar or nuclear energy is fed into the grid, the Clean Energy Certificates
can be traded as credits to claim the environmental and social benefits of low
carbon energy consumption.

Othman Al Ali, Chief
Executive Officer of EWEC, said: “EWEC is proud to be playing its role in
supporting DoE’s new strategic initiative to decarbonize Abu Dhabi’s
electricity value chain. The UAE has an ambitious program of initiatives to
take climate action, and EWEC is actively supporting these by leading the
change in the energy sector with a focus on sustainability and renewable
technologies. EWEC will facilitate the implementation of Abu Dhabi’s Clean
Energy Certificates scheme by offering I-REC accredited certificates for sale on
a quarterly basis. More details on the process will be released shortly, but in
the meantime interested parties can visit the EWEC website for more information
on how to participate in this exciting initiative.”

To ensure a
non-discriminatory approach to the Clean Energy Certificates scheme, anyone
can act as a Participant and can purchase the certificates and
sell them in whole or in part to end customers. The Single Registrant can
also act as a Participant with prior approval from DoE. This
allows anyone, from large corporations to smaller environmentally conscious
businesses, to benefit from the system, regardless of their level of
consumption. Anyone can buy certificates that guarantee that the electricity
they consume does not emit CO2.

Unlike I-REC systems in other regions, the DoE
will not charge a fee for acting as a local Issuer, which will allow customers
to benefit from the certificates at very competitive prices.

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