10 July 2018

Current view on RED II developments

In June the EU Commission, Parliament and Council have come to a provisory agreement on Europe’s renewable path toward 2030. 

The formulation of the new Renewable Energy Directive (RED II) is part of this and includes critical parts related to the definition, structure and use of Guarantees of Origin, mainly described in Article 19 of RED II.

The REDII represents a major step forward in strengthening the “system of Guarantees of Origin” and although the text for RED II has not been finalized, the chances are likely that the following can be expected from the new Directive:

  • MAY is changed to SHALL in Art 19.8 – making GOs mandatory and sole tool for making renewable claims and disclosure
  • Member states can determine if production devices receiving national support are eligible to receive GOs as long as double compensation is avoided. This is similar to today’s effective policy.
  • There will be no mandatory auctioning – as proposed in early version from the Commission
  • The use of GOs will be extended from the electricity sector to gas, heating and cooling
  • Simplified GO information will be allowed for smaller renewable installations
  • Validity is harmonized to 12 months from production date, with another 6 month window allowed for cancellations

This information is based on unofficial commentsand the final text may differ from the above summary. The REDII still needs to be approved formally by both the Parliament and the Council.

More information can be read in the note by the Council, available here.