Green certificates

The green certificate system is currently used in Italy to encourage the production of electrical energy from renewable sources. As of 2002 the Bersani Decree, as modified by laws 244/07 and 239/04 and Legislative Decree 387/03, states that 2% of the electricity produced by electrical energy providers (over 100 GWh/year) must come from renewable-source plants. This obligation was raised by 0.35% from 2004 to 2006 and by 0.75% from 2007 to 2011 (3.8% in 2008). Electrical energy producers have two options. They can either directly produce a growing amount of energy from renewable sources (new investments) or cover part or all of their requirements by buying green certificates (also known as renewable energy certificates or RECs) on the market. On the supply side, the system is based on the supply of green certificates by producers of energy from renewable sources, who receive a number of certificates proportional to their electrical production from the system’s administrator (in Italy, the electrical services authority GSE). These producers thus benefit from a double source of income, from both the sale of electrical energy and the sale of green certificates. The price of the certificates, which up until 2006 (in a “short” market system) followed a benchmark value published by GSE, has steadily decreased since 2007 (the green-certificate market has become “long”) and is currently awaiting new stabilization following the implementation of Italy’s 2008 Budget (the executive decrees should fix the REC price at €180 – the average cost of electrical energy on the market).

Olicar has received green certificates for a cogeneration plant combined with a district heating network and plans to increase its production of energy from renewable sources in the near future. Within the limits of its own production, the company makes an ideal partner for businesses bound by the Bersani Decree, ensuring the supply of the green certificates needed to fulfil their legal obligations.