"Domestic Renewable Energy Certificate Market Trading Tutorial Demonstration Project (Draft)" Seminar

No Type Questions BSMI reply
1 Institutional norms Will the effective domain of Renewable Energy Certificate (REC) in our country be limited to Taiwan Island only or include the outlying island areas? The Renewable Energy Certificate (REC) in our country is applicable to the Taiwan island and the outlying island areas; wherein, the electricity/certificate unbundled REC market can be traded across islands.
2 Does the scope of recognition for renewable energy include the items of electricity generated from the refuses and the recovery of waste heat, etc.? Currently, the applicable objects specified by the institution to apply for the Renewable Energy Certificate include solar energy, biomass energy, geothermal energy, ocean energy, wind power, non- pumped storage hydropower, and energy directly utilized or generated from processing the domestic general refuses and industrial wastes, etc.; as for the electricity generated from recovering the waste heat, a further investigation for the inspection & testing technology and the international recognition standard will be undertaken with the Inspection Unit to study if it can be categorized to the renewable energy.
3 At present, the application procedure for Renewable Energy Certificate is very intricate, especially for the Public Sectors, it is time-consuming to obtain the seal-affixed documents. Can the related procedures be simplified? In the future, the application procedure will be appropriately adjusted according to the actual application condition, and using a smart electricity meter to feed back the electricity generation capacity to the platform will be promoted step by step in order to simplify the related operation processes.
4 How to guarantee that Renewable Energy Certificate issued in our country will not be used repeatedly or declared? Each certificate is attached a unique number that can manage the source and holder of Renewable Energy Certificate (REC) via fair and transparent tracing system; thus it can ensure that environmental benefit will not be repeatedly calculated. So the user has the emission coefficient of electricity published in the certificate that can be cited as the basis for calculating the environmental benefit; meanwhile, by taking the advantage of REC management platform, every entry of REC trading and use information can be effectively traced and managed to ensure the purchaser's use declared in the enterprise social responsibility from environmental benefit and use for greenhouse gas inventory to avoid the repeated calculation of environmental benefit.
5 Environmental benefit The benefit of Renewable Energy Certificate is involved with the calculation of Green House Gas emission, what is the linking extent between the system and the GHG- related system? After consulting with EPA, the Renewable Energy Certificate can be used as the computational tool for the indirect emission at electric generation side for greenhouse gas inventory; that is, the electricity generation capacity published in the Renewable Energy Certificate and the Electricity Emission Coefficient (Electricity Carbon Emission Factor) can be used for calculating the greenhouse gas inventory.
6 The Renewable Energy Certificate (REC) can be used for greenhouse gas (GHG) reduction and inventory, what is the difference between the REC and the carbon credit? Carbon credit will exist only subject to a premise of implementing the total capacity control, when an enterprise has a carbon emission lower than the threshold set by the total capacity control; the lowered credit to the threshold is the carbon credit that can be entered into the "Emission Trade System (ETS)" for trading. Another kind of GHS emission management system related to the enterprise is the Reduction Inventory; the industry can improve the manufacturing processes in factory, renew the equipments or use the renewable energy, etc., approaches to reduce the GHG emission; wherein, the REC is the proof of using the renewable energy, the GHG emission coefficient 0 recorded therein can be used for calculating the reduction.
7 Since the Renewable Energy Certificate (REC) can be used as the tool for enterprise to reduce the Greenhouse Gas (GHG) Emission, will EPA adopt the numerical values after enterprises' reduction in recent years when Environmental Protection Administration (EPA) setting the criteria for controlling the allowance of total GHG emission in the future? Since the schedule for implementing the total capacity control is still under planning, the practical implementing approach shall still need to be specified by relevant competent organizations in charge of the system.
It is recommended that enterprises should firstly reserve the evidential documents regarding the efforts and achievements made for GHG reduction, and submit the evidence for recognition after implementing the GHG total capacity control.
8 Some non-government third-party verification institutions are not familiar with the proof of environmental benefits from the Renewable Energy Certificate (REC); therefore, during the process when relevant unit follow the ISO 14064- 1 to verify the user's GHG emission, the unit did not recognize the benefit of REC and did not publish the benefit thereof in the issued statement documents, either. REC system team will continue to communicate with relevant non-government verification units, speed up the promotion and propaganda for the environmental benefit represented by REC through the exchange platform.
9 Market trade After obtaining the Renewable Energy Certificate (REC), can it be resold for several times? In the light of that announcement and use of REC environmental benefit is limited to the current year, therefore, in order to avoid the repeated calculation and announcement, the internationally relevant system are refereed for designing the REC system in our country; and the number of time for transferring the ownership of certificate is one time (transferring to the end user), in principle.
10 The suggested selling price proposed in the Renewable Energy Certificate Market Trading Tutorial Demonstration Project in our country is higher than other countries', it is suggested to imitate and learn from the international measures to offer a privilege (for examples, Investment Tax Credit - ITC and Production Tax Credit - PTC for American enterprise's energy investment) to enhance the inducement of tax revenue for the investor of renewable energy, and leave the certificate price to the market demand and supply for determination. In our country, it does not have environment-related tax items (for examples, energy tax, carbon tax, etc.) so far, therefore, to offer a privilege solution to the tax revenue from renewable energy remains to be discussed and agreed by relevant competent organization; and to encourage the development of renewable energy market at the present stage, it is anticipated to take the income from REC trade to bring along the investment in electricity generation side, promote the booming development of renewable energy; and still leave the actual certificate-trading price to both the buyer and seller parties for negotiation; the prices proposed in the BSMI Demonstration Project are for reference only.
11 What are the advantages for local government to act as a match-making institution? The local government can take the local resources to assist the central government in conducting a match- making operation in the administrative region thereof; such operation is also helpful for counseling & coaching and managing the vendors in need of green energy within its jurisdiction and promoting the booming development of local renewable energy industry.
12 For trading the Renewable Energy Certificate amid different counties and cities, will their benefit be recognized by the low-carbon convention of every local government? REC system team will continue to communicate with local government respectively, speed up the promotion and propaganda for REC through the exchange platform, and generalize its use benefits.
13 Others The scope of information opened in the information management platform of Renewable Energy Certificate. The information disclosed by the REC information management platform in our country include the certificate possessor, place of electricity generation, electricity generation interval, certificate number and issuance date. Moreover, for those participants that intend to take part in the certificate trading market, they can search for the enterprise information of both buyer/seller parties, category of power source and number of certificate to be purchase, and the contact window, etc., information. After the trade is done, the platform will disclose the relevant information other than the trading price.

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