Guarantees of origin
Gasgrid Finland is responsible for maintaining the voluntary biogas certificate system. With the regulations under preparation, Gasgrid Finland Oy will become the registrar of the renewable gas guarantee of origin system. On this page we will inform you about the development of the system.
What is the gas guarantee of origin system?
According to the EU’s Renewable Energy Directive (RED II), it must be possible to guarantee the origin of energy to end-users when it comes to demonstrating the share or amount of energy from renewable sources. This is done by granting guarantees of origin corresponding to the production output of energy from renewable sources and, accordingly, by withdrawing the guarantee in question when said amount of energy is released for final use.
The guarantee of origin system has so far only been used in electricity. The obligations under the guarantee of origin system will also enter into force on 6 June 2021 for gases from renewable energy sources. From now on, the operator must obtain guarantees of origin if they have informed the gas end-user that they will supply the user with gas from renewable energy sources. An exception to this are biogas certificates that are currently in use to demonstrate that the gas originates from renewable energy sources until the end of 2021.
Preparation of the gas guarantee of origin system in Finland – situation on 7 April 2021
The Government Proposal for the Act on Guarantees of Energy Origin will be submitted to Parliament in the spring of 2021. For this reason, all information below is forward-looking and is subject to change depending on the final form of the government proposal and the parliamentary consideration of the law.
Gasgrid Finland Oy will maintain the gas guarantee of origin system in Finland from 30 June 2021, which means that Gasgrid Finland Oy will grant guarantees of origin to energy produced on 20 June 2021 or thereafter. Gasgrid Finland Oy will adopt the electronic system required by the guarantee of origin register by the latest on 1 November 2021.
Gas guarantees of origin are granted for gases and hydrogen from renewable energy sources produced in Finland. The guarantee of gas origin system is open to producers of gas and hydrogen from renewable energy sources, gas users and market participants, regardless of whether the gas is fed into the natural gas network or produced or used outside the natural gas network. The Act on Guarantees of Origin of Energy will include exceptions in situations where the operator does not have to obtain guarantees of origin.
Joining the gas guarantee of origin system requires an agreement with Gasgrid Finland Oy. The gas guarantee of origin system can be joined no earlier than 1 June 2021 and the actual processing of guarantees of origin will start on 1 July 2021.
Transfer of gas guarantees of origin between countries – situation on 7 April 2021
Gas guarantees of origin can be transferred between EU countries if the guarantees of origin to be transferred meet the legal requirements for guarantees of origin. In the initial phase, Gasgrid Finland Oy processes transfer requests on a case-by-case basis, as there are no agreements with the administrators of guarantees of origin in different countries regarding the requirements and arrangements related to the transfer.
At least at the initial stage, it is not possible to transfer gas guarantees of origin between Finland and non-EU countries.
Relationship between the gas guarantee of origin and the biogas certificate system – situation on 7 April 2021
At a notification of a biogas certificate holder, Gasgrid Finland Oy may, when the guarantee of origin legislation becomes effective or thereafter, convert a biogas certificate registered in the biogas certificate register to a guarantee of origin. A biogas certificate holder’s notice must be submitted by the latest on 31 December 2021. In addition, Gasgrid Finland Oy will cancel biogas certificates that have been converted to guarantees of origin if they have not been used within 18 months of the last production date of energy corresponding to the guarantee of origin.
The current biogas certificate system is to be phased out during 2022, when there is no longer a need for biogas certificates. The last biogas certificates will be granted to biogas produced on 31 December 2021.
Gas guarantee of origin and excise duties – situation on 7 April 2021
Current tax practices are likely to remain in place until the end of 2021. According to the current draft of the government proposal, biogas certificates could be used until the end of 2021 for consumers as an indication that the gas originates from renewable energy sources.
Gas guarantee of origin and emissions trading
The Energy Authority decides on the utilization of gas guarantees of origin in the emissions trading system.
Answers to frequently asked questions about the guarantee of origin system
The current biogas certificate system will continue to operate until at least the end of 2021.
Gasgrid cannot comment on this issue.
The new system will be available for registering from 1.6.2021 at the earliest. Information and training events will be held in May-June 2021.
Guarantees of origin play no role in the traffic distribution obligation system.
Guarantees of origin have no role in excise duties in 2021.
The Energy Authority decides on this.
Guarantees of origin will be accompanied by additional information on the origin of the gas and the support schemes targeted at it, so this is possible.
Providing that the Act enters into force on 1.7.2021.
They remain in force and are later used as biogas certificates or converted into guarantees of origin, in which case the biogas certificate is cancelled and replaced by a corresponding guarantee of origin. The latter is possible by the deadline mentioned in the transitional provision of the Act on Guarantees of Origin of Energy, provided that the draft transitional provision is adopted as law.
For them, it should be demonstrated that they are guarantees of origin in accordance with the legislation on guarantees of origin, in order for the guarantees of origin to be transferable to Finland.
Sustainability should be verified separately from guarantees of origin as before. It is still undecided whether sustainability information should or could be included in the guarantees of origin as additional information. Further information will be provided when the update of the CEN-EN 16325 standard on guarantees of origin is published.