Oireachtas Joint and Select Committees

Tuesday, 15 February 2022

Joint Oireachtas Committee on Climate Action

Commission for Regulation of Utilities Strategic Plan: Discussion

Ms Aoife MacEvilly:

The guarantees of origin are established under an EU system that enables generators to effectively purchase the green value, if you like, of renewable generation. It is done in a way that is monitored and guaranteed through the EU. It is managed in Ireland through EirGrid and us. The Senator is probably aware it is a pooled market and the fact that Energia owns the Huntstown station does not mean an Energia customer will get those molecules into his or her home any more than the fact the company owns wind farms in Donegal means somebody will get those molecules into a home. Energy or electricity from the pool is effectively what people get.

There is a methodology through this system of guarantees of origin whereby suppliers can augment the natural level of renewables that come through. Members know this is approximately 40% over a year in our system. It also involves imported value of renewables in other locations in Europe. Our role is in verifying that if a supplier offers this 100% green service, it either has through the public service obligation levy the entitlement to call that portion of the electricity green or can do so through the purchase of these EU guarantees of origin.

It has been a challenge for customers to understand. As the Senator has said, the numbers end up looking like we might have 100% renewables because so many suppliers have invested in supporting these guarantees of origin. It looks like it even makes up 120% of our electricity.

From the customer's perspective, if a supplier states the supply is 100% green, we can stand over whether the supplier has the contracts to prove that. What we have been thinking about is trying to explain to customers what this is and what it is not. It is a contractual entitlement to the "greenness" of the electricity rather than a guarantee that every molecule or unit of electricity coming into a home came directly from a wind farm. We have been thinking about how to explain that because it is a complex area. We do not want customers to feel like they are being greenwashed because suppliers are genuinely buying the contractual right through an EU system that is verified and verifiable. At the same time, if customers believe this means every unit is green, it should be made clear that this is not exactly what it means. It is just about explaining what it is and is not. I may have explained that poorly.

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