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REGATRACE publish rules on GOs for energy carrier conversion

Tuesday, 16 November 2021

Author: Kevin Lim

Earlier this week, the EU REGATRACE project announced the publication of their harmonised rules for handling GOs where energy carrier conversion is involved. Energy conversion, particularly Power-to-X will see more application as the green hydrogen market grows.

The guidelines are an attempt to bring transparency and trustworthiness to conversion GOs in documenting the origins of a gaseous energy carrier.

The overarching goal of the REGATRACE project is to create a centralised system for trading gas GOs in Europe, with major stakeholders including the AIB and ERGaR. Furthermore, REGATRACE is divided into eight work packages (WPs) with the relevant work package here WP4 - "Integration of GoO from different renewable gas technologies with electric and hydrogen GoO systems". The touted document is the result of work package deliverable D4.3.

The EECS rules, which are adopted for renewable electricity (RES-E) GOs, also have provisions for energy conversion, although the D4.3 outcomes are intended to provide more guidance specific to GO issuance where energy conversion is involved.

The D4.3 document lists seventeen rules, as well as seven kick-off recommendations. It should be noted that the rules themselves are strictly recommendations and have not been mandated - definite rules are difficult to propose at this stage with the framework for gaseous GOs incomplete.

An example of the process for GOs issued for green hydrogen production is given below.

(two slides)

While conversion GOs are often viewed in the context of green hydrogen, the rules and systems are intended to encompass any conversion between energy carriers - this also includes biomethane to renewable hydrogen.

The rules and recommendations as they appear in the document are:

  • Rule 1. Cancelling GOs for input energy carrier
  • Rule 2. Issuing new GOs after energy carrier conversion
  • Rule 3. Go conversion requires physical energy carrier conversion
  • Rule 4. Cancel only GOs of the same energy carrier as the physical energy input

Kick-off Recommendation 1. New GO validity period after conversion

  • Rule 5. Measuring output energy from conversion
  • Rule 6. Measuring input energy into conversion
  • Rule 7. Proportional allocation of attributes from input to output GOs

Kick-off Recommendation 2. Plausibility check of input-output flows via default conversion efficiency factors

Kick-off Recommendation 3. Conditions for using default conversion efficiency to determine the amount of input GOs to be cancelled

Kick-off Recommendation 4. Limitative description of data format of GOs

Kick-off Recommendation 5. Immutability

Kick-off Recommendation 6. Limit number of Attributes to be conveyed from input GOs to output GOs

  • Rule 8. GOs are primarily to inform about the energy source
  • Rule 9. Full chain data traceability
  • Rule 10. Information on a cancellation statement used for conversion
  • Issuance

Kick-off Recommendation 7. Pre-conversion info on public support: balance complexity of data handling with value for additionality evaluation

  • Rule 11. Data on newly issued GOs for output of energy carrier conversion
  • Rule 12. Attributes on newly issued GOs needing dedicated attention
  • Rule 13. Provision of publicly accessible information regarding national
  • Rule 14. Avoidance of double counting while acknowledging imported GOs
  • Rule 15. Transparent liability allocation
  • Rule 16. Ex-ante check on input go cancellation where possible, alternatively
  • Rule 17. Classify the cancellation as “cancellation for conversion” purposes