Electricity suppliers using imported ‘green’ certs to bolster renewable figures

EU-approved system allows companies to count power generated and used outside Ireland in disclosures to customers

Leading energy suppliers have confirmed that they count green electricity generated and used outside Ireland when giving customers details of the fuels they use to produce the power they sell.

Figures published by the Commission for the Regulation of Utilities (CRU) show that 56 per cent of the electricity sold here last year was generated by wind, solar and other renewables.

However, the actual proportion generated by renewables was about 36 per cent in 2021, which was a poor year for green electricity as wind speeds were lower than average.

According to the regulator, Irish suppliers buy EU-approved green certificates, known as guarantees of origin (GOs), which allow them to count renewable electricity generated and used elsewhere in the European Economic Area (EEA) as theirs.

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“As part of the fuel mix, suppliers may claim the attributes of renewable electricity generated outside of Ireland through electronic certificates known as guarantees of origin, which may be imported from other EEA member states,” says a CRU report published this week.

Leading suppliers — ESB subsidiary Electric Ireland, Bord Gáis Energy, Energia and SSE Airtricity — all confirmed that they buy guarantee of origin certificates and count them in yearly reports to customers where they give details of the fuels used to generate the electricity they sell.

Electric Ireland said that it buys GOs in the EU market to meet customers’ green demand. The company added that it is independently audited every year, down to customers’ individual meters, to ensure that it complies fully with the relevant EU legislation and directives.

“All customers who are on a renewable tariff have GOs to match their demand,” said Electric Ireland.

The company’s 2021 fuel mix disclosure said renewables accounted for 65.3 per cent of its electricity.

SSE Airtricity, whose 2021 disclosure said renewables accounted for 100 per cent of its electricity, also confirmed that it uses the green certificates.

The supplier said that it sourced all its electricity from renewable sources, including SSE’s 28 Irish wind farms.

“To ensure we meet the demand of all our customers, we also utilise third-party contracts, including a 15-year agreement with Ireland’s largest solar farm in Rasharkin, Co Antrim,” SSE Airtricity added.

Energia, which also tells customers that 100 per cent of its electricity comes from renewables, said it provided about 2.24 million megawatt hours (MWh) of electricity from onshore wind to the market last year.

“Energia provides 100 per cent green electricity to homes and businesses through a combination of renewable generation on the island of Ireland and renewable generation within the EU under the relevant EU legislation supporting the sale and purchase of GOs within the EU,” the firm explained.

Bord Gáis Energy confirmed that it used a combination of renewable generation from its own portfolio, supported by GOs when necessary. Renewables accounted for 41.1 per cent of its electricity last year.

The certificates are traded according to EU rules. Norway accounted for the highest number “imported” to Ireland last year, providing GOs that covered 10.5 million MWh of electricity.

The CRU wants to change the way companies detail their use of the certificates to provide greater transparency to customers.

The regulator pointed out that the system is long established and has supported the development of extra renewable generation across the EU.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas