As part of its commitment to driving the transition to a sustainable decarbonized energy sector, the Abu Dhabi Department of Energy (DoE) has issued a Regulatory Policy for Clean Energy Certificates, laying the groundwork for the emirate’s first market for trading renewable and nuclear energy attributes.
The Policy lays out the rules and principles for implementing a clean energy certificates scheme in Abu Dhabi, with the goal of reducing the carbon footprint associated with power generation while also providing a reliable accreditation system that caters to the growing desire among corporations and individuals to contribute to the fight against climate change.
Because electricity generated from clean energy sources is indistinguishable from electricity generated from other sources, and attribute tracking system is needed to verify electricity providers’ and consumers’ claims of using low or zero-emissions electricity, thereby lowering their carbon footprint.
To support credible clean energy usage and delivery claims, the Department of Energy created the Clean Energy Certificates scheme, which is based on the International Renewable Energy Certificate Standard Foundation’s internationally recognized attribute tracking system for renewable energy certificates (I-REC Standard). Both parties have signed an agreement designating DoE as the Emirate of Abu Dhabi’s approved I-REC local issuer.
For the implementation of Abu Dhabi’s Clean Energy Certificates scheme, four important stakeholders have been recognised as essential facilitators. 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. 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 It keeps track of all trades, checks claims, and assures there are no Clean Energy Certificates double counting.
The Emirates Water and Electricity Company (EWEC) will serve as a Single Registrant for electricity injected into the system by DoE-licensed generators. EWEC will ensure that all renewable energy generation plants in Abu Dhabi are listed in the I-REC Registry. Participants are businesses or individuals seeking a clean energy certificate by creating an account on the I-REC Registry platform. After receiving a request from the Single Registrant, the Department of Energy issues certificates in units of 1 MW/h. Following that, participants can acquire certificates and assign 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.”
Sustainable Energy Certificates (CECs) are optional tradeable financial instruments that certify the purchase of a particular amount of electricity produced by a clean energy source. Clean Energy Certificates can be sold as credits to claim the environmental and social benefits of low carbon energy usage once solar or nuclear energy is supplied into the system.
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 byleading 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 offeringI-REC accredited certificates for saleon 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.”
Anyone can operate as a Participant in the Clean Energy Certificates programme and purchase and sell certificates in whole or in part to end customers, ensuring a non-discriminatory approach. With previous clearance from the Department of Energy, the Single Registrant can also act as a Participant. This allows anybody to benefit from the system, from huge enterprises to smaller environmentally aware firms, regardless of their level of usage. Anyone can purchase certificates certifying that the electricity they use does not emit CO2.
Unlike other I-REC systems, the Department of Energy will not charge a fee for acting as a local Issuer, allowing users to take advantage of the certificates at very competitive prices.
