Green electricity increased by 254% year-on-year, and green certificates increased by 1839% year-on-year. The thoughts behind the consumption boom
Since the beginning of this year, the trading volume of green certificates and green electricity in my country has increased significantly. The China Electricity Council recently released data showing that in the first five months of this year, the country's total consumption of green power and green certificates reached 187.1 billion kilowatt-hours, of which 148.1 billion kilowatt-hours came from green power transactions, a year-on-year increase of 254%; 39.07 billion kilowatt-hours came from green certificate transactions, a year-on-year increase of 1839%.
According to the website of the National Energy Administration, in order to effectively improve the efficiency of green certificate issuance and promote full coverage of green certificate issuance, on June 30, 2024, the national green certificate issuance and trading system has been officially launched.
However, recently, the European Commission issued draft rules for calculating the carbon footprint of electric vehicle batteries, stipulating that companies cannot reduce the carbon footprint of electricity by purchasing green certificates. The application scenarios of green certificates remain to be seen. So, what signals have been released behind the rapid growth of green electricity and green certificate transactions in my country? What thoughts are needed behind the craze of green certificates and green electricity consumption? Our reporter interviewed many experts and industry insiders.
Green electricity and green certificates promote the market-oriented development of new energy
Endogenous power, government push, and external pressure promote the growth of green electricity and green certificate transactions
"The green electricity and green certificate markets have effectively promoted the market-oriented development of new energy sources, mining the environmental value of new energy sources through the market, and then realizing it through the green electricity market, providing more support for promoting the development of new energy sources." Zhang Xian, director of the New Energy Trading Department of the Beijing Electric Power Trading Center, said that my country's new energy is developing rapidly and ranks first in the world in installed capacity. In recent years, new installed capacity has also ranked first in the world, and the growth rate far exceeds expectations. Therefore, new energy consumption is an important issue.
"The market is our fundamental mechanism to solve the problems of new energy consumption and development. Among them, the green electricity and green certificate trading mechanism is one of the ways to promote the full entry of new energy into the market." Han Fang, deputy director of the Planning and Development Department of the China Electricity Council, also pointed out that through the green electricity and green certificate markets, the environmental value of new energy is reflected, and it is also conducive to promoting the participation of new energy in the electricity energy market. Moreover, the green electricity and green certificate markets also meet the needs of users for low-carbon transformation and green energy use, and is a win-win mechanism for development and utilization.
Recently, the China Electricity Council (hereinafter referred to as China Electricity Council), Beijing Electric Power Trading Center, Guangzhou Electric Power Trading Center, and National Renewable Energy Information Management Center jointly released the "2023 China Green Power (Green Certificate) Consumption Top 100 Enterprises Directory"(hereinafter referred to as TOP 100 Enterprises).
Our reporter noted that the TOP 100 companies cover industries such as energy, telecommunications, petrochemicals, steel, Internet technology, automobile manufacturing, and life services, fully demonstrating the outstanding contributions made by companies in various industries in promoting green transformation of energy consumption and achieving sustainable development. contribution.
According to the green electricity consumption rankings of TOP 100 companies, it can be seen that some large multinational companies consume large amounts of green electricity and green certificates. This also reflects that my country has achieved remarkable results in accelerating the green and low-carbon transformation of power consumption in the industrial sector.
Take the Beijing Electric Power Trading Center as an example. Since the launch of the Beijing Electric Power Trading Center's green certificate trading platform in the second half of 2022, by May this year, the cumulative transaction volume has reached 58.99 million. In the first five months of this year alone, the transaction volume reached as high as 33.9 million, a year-on-year increase of 30 times; Since the Beijing Electric Power Trading Center launched trading in September 2021, by May this year, the State Grid Green Power Trading has reached 176.4 billion kilowatt-hours. In the first five months of this year, the transaction electricity has reached 93.4 billion kilowatt-hours, a year-on-year increase of 155%.
Why the trading volume of green electricity and green certificates has grown rapidly? Li Zhu, director of the Marketing Department of the Beijing Electric Power Trading Center, analyzed that it is mainly affected by endogenous motivation, government push, and external pressure. Our country is promoting the "double carbon" action from the central to local governments. Many large central enterprises, such as TOP 100 enterprises, are actively transforming and choosing to consume green electricity. At the same time, in recent years, relevant government departments have been continuously improving the relevant system of green electricity and green certificates, improving the application scenarios of green electricity and green certificates, and stimulating the demand for green electricity and green certificates; External pressure comes from global transformation. By participating in green electricity and green certificate transactions, my country's export products can enhance its brand value and global competitiveness to a certain extent, which is also an important reason for promoting the growth of green electricity and green certificate consumption.
Enterprises actively purchase green electricity
The biggest demand is to link it to carbon and solve the problem of carbon emissions
According to data from China Electricity Council, the 254% year-on-year growth in green power transactions is closely related to "carbon".
"We have been extensively contacting green electricity users before. Their biggest demand for purchasing green electricity is to link it to carbon and solve the problem of carbon emissions." Zhang Xian told this reporter that the current EU's carbon border adjustment mechanism and related bills are carbon-related trade rules. Therefore, when companies export goods, they are most concerned about carbon.
Although my country has not yet established a national carbon emission deduction mechanism for green electricity, domestic and international governments have also clearly recognized the carbon reduction effect of green electricity. From many aspects, purchasing green electricity is expected to realize enterprises 'demand to solve carbon emissions.
It is understood that compared with green certificates, the international community more recognizes the emission reduction effect of green electricity because green electricity trading bundles the energy attributes and environmental attributes of clean electricity. Visible electricity and invisible green rights are integrated. Customers need to spend the normal electricity price plus the additional price of green rights and interests to purchase green electricity. The environmental attributes of green electricity can be realized without any additional operations.
In February this year, the State Council issued the "Interim Regulations on the Administration of Carbon Emissions Trading". The "Regulations" pointed out that if key emission units consume non-fossil energy electricity, their carbon emission quotas and greenhouse gas emissions will be adjusted accordingly in accordance with relevant national regulations. This year's government work report also emphasized the need to promote the use of green electricity and international mutual recognition.
In April this year, the "Notice on Paying Attention to the Pilot Management of Carbon Emission Units and Carbon Emissions Trading in the City in 2023" issued by the Beijing City Ecological Environment Bureau clearly pointed out that green electricity purchased and used by key carbon emission units through market-based means The carbon emissions of green electricity are calculated to zero; In June, the "Notice on Adjusting the Accounting Method for Green Power Carbon Emissions in Purchased Power by Carbon Trading Enterprises in the City" issued by the Shanghai City Department of Ecology and Environment clearly pointed out that the emission factor of purchased green power is adjusted to 0tCO2/104kWh, which means that the carbon emissions of purchased green power by recognized enterprises are zero.
In addition, from the "Guidelines for Enterprise Greenhouse Gas Emissions Accounting and Reporting Cement Clinker Production (Draft for Comments)" and "Guidelines for Enterprise Greenhouse Gas Emissions Accounting and Reporting Aluminum Smelting Industry (Draft for Comments)" issued by the Ministry of Ecology and Environment in April this year, it can also be seen that my country is actively promoting the specific mechanism of "electricity-carbon" connection.
The preparation instructions for the above two exposure drafts show that indirect emissions, including non-fossil energy electricity used through market transactions, are calculated as zero. If these two drafts are officially released, green electricity can be regarded as zero-carbon.
"This means that emission control companies can reduce their own carbon emissions by consuming green electricity, thereby better fulfilling their obligations." said Irene, deputy director of the Energy Information Center of the General Institute of Hydropower and Water Conservancy Planning and Design.
Green certificate application scenarios remain to be seen
More top-level designs are needed to solve the "double benefit" problem of green certificates
According to data from China Electricity Council, green certificate transactions have increased by 1839% year-on-year since the beginning of this year. However, the current application scenarios of green certificates are still limited. The draft rules for calculating the carbon footprint of electric vehicle batteries recently issued by the European Commission clearly stipulate that companies cannot reduce their electricity carbon footprint by purchasing green certificates.
Zhang Xin, chief economist of the National Center for Strategic Research and International Cooperation on Climate Change, recently wrote an article in the China Environment News,"Coordinating and Promoting the Construction of Voluntary Carbon Markets and Jointly Cultivating New Green and Low-Carbon Movements." The article pointed out that the application scenarios of green certificates still remain to be seen.
"The reason why the trading volume of green certificates has increased significantly is mainly driven by the domestic market." Cui Bolong of Carbon Cleaning Technology (Wuxi) Co., Ltd. told reporters that in order to promote the consumption of renewable energy, relevant domestic departments are promoting green certificates, and many companies want to neutralize or reduce carbon and will require their suppliers to purchase domestic or international green certificates. Although many companies have deployed new energy use in production, they will also purchase green certificates if they cannot meet customer requirements. Generally, domestic suppliers will mainly purchase domestic green certificates.
It is reported that the "Notice on Full Coverage of Renewable Energy Green Power Certificates to Promote Renewable Energy Electricity Consumption"(hereinafter referred to as the "Notice") issued in August last year stated that wind power, solar power, conventional hydropower, biomass power generation, geothermal energy power generation, ocean energy power generation, etc., renewable energy power generation projects that have been established and established will be issued with green certificates for all electricity produced.
"With the advancement of full coverage of green certificates and green electricity, if renewable energy CCER projects such as offshore wind power and solar thermal power generation sell the green certificates they have obtained while receiving CCER, it will result in part of the emission reduction contribution achieved by the project. The voluntary carbon market and the green certificate and green electricity market are repeatedly stimulated, resulting in 'double benefits', which is also reflected in the recognition conditions set by mainstream international green electricity initiatives such as the international organization RE100. Among them, thanks to technical method requirements such as additionality, the credit indicators issued by the voluntary emission reduction trading mechanism emphasize the additional emission reduction contribution compared with green certificates that only reflect the zero-carbon nature of renewable energy and electricity. The incentive for emission reduction contributions ensures that CCER enjoys higher indicator quality and makes its application scenarios far exceed the applicable 'Scope 2' category represented by indirect emissions such as green certificates." Zhang Xin pointed out in the article.
An industry insider told this reporter that since domestic green certificates are separated from electricity and certificates, the purchaser actually only has the right to declare, that is, to declare that it uses green energy. In this case, green electricity will be repeatedly developed. The possibility is high. For example, if the green certificate of renewable energy such as offshore wind power and solar thermal power generation included in the CCER has been sold before being signed for the CCER, which means that its environmental rights and interests have been sold once, and then signed for the CCER, it will result in one-degree electricity being over-developed.
Although the "Notice" clearly states that the uniqueness of the environmental value should be ensured and no double calculation or sale should be allowed. However, the corresponding top-level design needs to be further improved.
"It is recommended that the green certificate mechanism further improve the top-level design, formulate and promulgate relevant policies and regulations, and clarify the rules for freezing, cancellation and repurchase of green certificates when renewable energy projects participate in the CCER mechanism." Zhang Xin suggested,"For owners of such projects who plan to apply for registration of CCER projects, the green certificate authority may freeze or cancel the green certificates related to the project according to the circumstances. Projects that have already traded green certificates may require them to repurchase and cancel the same amount of green certificates, and make them public to avoid unnecessary" double benefits "after corresponding indicators flow into the trading market, and ensure market fairness and seriousness.
