Latvian electricity producers have the opportunity to sell guarantees of origin throughout Europe


The Association of Issuing Bodies (AIB) has recognised the electricity certification system established by the Latvian transmission system operator JSC Augstsprieguma tīkls (AST) as safe and reliable, as a result of which Latvian producers have the opportunity to sell certificates of origin throughout Europe. Proof of origin is an electronic document that proves the origin of the electricity produced, certifies that the electricity is obtained from renewable energy sources or in a high-efficiency cogeneration process.

"Since last December, less than a hundred electricity generation companies have already registered in the electricity origin certification system, as well as 35 000 electricity origin certificates have been issued and the same number have been used, which proves that the interest is high. Registration of electricity producers in the guarantee of origin system gives electricity producers the opportunity to earn additional income from electricity production by exporting guarantees of origin to countries where there is a shortage of renewable electricity, but at the same time the public wants to support green initiatives by choosing green electricity, explains Manager of AST Data Analysis Group Aigars Sīlis.

In accordance with the requirements of the Electricity Market Law, AST started issuing certificates of origin from 1 December 2020, and according to the decision of the Association of Issuing Bodies AIB, all certificates of origin for electricity produced in Latvia after 1 December can be sold in any AIB member state. AIB maintains a central electronic register of guarantees of origin, which strengthens the implementation of European standards and regulations in the field of energy guarantees (EECS – European Energy Certificate System) and facilitates cross-border trade in guarantees of origin throughout Europe.

The system of guarantees on the origin of electricity provides an opportunity for Latvian electricity producers to receive guarantees of origin of electricity and sell them in Latvia or on the European market. Previously, Latvia had a national system of guarantees of origin, which limited the possibility to sell certificates of origin of electricity produced in Latvia outside the country.

Guarantee of origin is an electronic document that can be purchased separately from electricity and transferred from one holder to another; the last holder of the guarantee of origin will be able to prove the origin of the electricity. For example, if an electricity consumer wants to document that it only consumes electricity produced from renewable energy, the consumer can buy electricity on the market and additionally purchase guarantees on the electricity’s origin, thus proving the consumption of “green” electricity.

For a producer to obtain guarantees of origin on the produced electricity and the right to sell them, it is necessary to carry out certification of the production unit through an independent, accredited auditor. In turn, under the contract, AST keeps records of the electricity produced and issues guarantees of origin of electricity, which the producer can either sell to other operators or use, certifying the origin of the electricity sold to the end consumer.

In addition, AST informs that it intends to hold an informative seminar on the procedure for granting proof of origin in March. More information on the guarantees of origin of electricity and the procedure for obtaining them is available on the AST website.