White certificates

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When determining the extent of energy saving, the energy use is compared against a baseline, which is an estimate of the energy use in the absence of any attempt at saving energy.
When determining the extent of energy saving, the energy use is compared against a baseline, which is an estimate of the energy use in the absence of any attempt at saving energy.

In environmental policy, White certificates are documents certifying that a certain reduction of energy consumption has been attained. In most applications, the white certificates are tradable and combined with an obligation to achieve a certain target of energy savings. Under such a system, producers, suppliers or distributors of electricity, gas and oil are required to undertake energy efficiency measures for the final user that are consistent with a pre-defined percentage of their annual energy deliverance. White certificates are given to the producer whenever an amount of energy is saved whereupon the producer can use the certificate for their own target compliance or can be sold to (other) obliged parties. Quite analogous to the closely related concept of emissions trading, the tradability in theory guarantees that the overall energy saving is achieved at least cost, while the certificates guarantee that the overall energy saving target is achieved.

A white certificate, also referred to as an Energy Savings Certificate (ESC), Energy Efficiency Credit (EEC), or white tag, is an instrument issued by an authorized body guaranteeing that a specified amount of energy savings has been achieved. Each certificate is a unique and traceable commodity carrying a property right over a certain amount of additional energy savings and guaranteeing that the benefit of these savings has not been accounted for elsewhere.

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[edit] Practical applications

[edit] In Europe

In Europe several countries have implemented a white certificate scheme or are seriously considering doing so. Italy started a scheme in January 2005; France a year later. Great Britain has combined its obligation system for energy savings with the possibility to trade obligations and savings. Denmark and the Netherlands are seriously considering introduction of a white certificate scheme in the near future.

In the UK, the Energy Efficiency Commitment (2002-2005) program required that all electricity and gas suppliers with 15,000 or more domestic customers must achieve a combined energy saving of 62 TWh by 2005 by assisting their customers to take energy-efficiency measures in their homes: suppliers must achieve at least half of their energy savings in households on income-related benefits and tax credits. In the current (2005-2008) EEC 2, energy saving targets were raised to 130 TWh suppliers, and here suppliers with at least 50,000 domestic customers (including affiliated licenses) are eligible for an obligation.

[edit] In the United States

Connecticut, Pennsylvania, and Nevada have adopted Energy Efficiency Portfolio Standards that require regulated utilities to meet a certain percentage of their projected power needs through energy efficiency. Utilities must meet their obligations by either reducing their consumers’ energy usage, or by purchasing energy efficiency certificates (white certificates). More states are expected to follow in the near future.

There is also a voluntary market where large corporations are purchasing energy efficiency certificates as a way of meeting their corporate commitments to reduce their carbon footprints.

[edit] References

[edit] See also

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