Spain approves management procedure of the system of guarantees of origin of gas renewables

On 31 October 2022, Order TED/1026/2022, of 28 October, approving the management procedure of the system of guarantees of origin of gas from renewable sources ("Order 1026/2022") was published in the Official State Gazette (BOE). This regulation, which came into force on 1 November 2022, develops the system of guarantees of origin of renewable gases created by Royal Decree 376/2022, the implementation of which was already foreseen in the Hydrogen and Biogas Roadmaps, as well as in measure 1.8 of the National Integrated Energy and Climate Plan (PNIEC) 2021-2030 and in article 12 of Law 7/2021, of 20 May, on climate change and energy transition.

The system of guarantees of origin aims to promote the production of gas from renewable sources and to demonstrate to end consumers that a certain amount of energy has been consumed from these sources. The system is an instrument that ensures publicity and the permanent management and updating of the ownership of these sources.

The guarantee of origin is an electronic certificate that accredits the renewable nature of the gas and provides detailed information on its production: when the energy was produced, the type of installation, the location and the energy source used, among other aspects. Specifically, Order 1026/2022 establishes that a guarantee of origin corresponds to the net production of 1 MWh of renewable gases.

Scope of application

The management procedure of the system of guarantees of origin applies to all fuel gas from renewable sources, including renewable hydrogen, biogas and any other gas of renewable origin determined by resolution of the secretary of state for energy, regardless of how it is produced and consumed. In addition, the procedure applies to (i) renewable gases that are injected into the gas system, (ii) renewable gases injected into isolated pipelines to the gas system, (iii) renewable gases with off-grid logistics and (iv) renewable gases self-consumed in the production facility.

Participants in the system of guarantees of origin

A) Responsible entity

The second additional provision of Royal Decree 376/2022 designates the Technical Manager of the Gas System, ENAGÁS, as the Responsible Entity for the system of guarantees of origin while the Ministry for Ecological Transition and the Demographic Challenge ("MITECO") does not have the human and technical resources to carry out its functions.

B) Holders of guarantees of origin

A holder of guarantees of origin is an entity for which an annotation account is established in which movements are recorded, in chronological order, corresponding to these guarantees of origin.

In order to become a holder of guarantees of origin, the signature of a contract of participation in the system of guarantees of origin is a prerequisite. The holders can be differentiated as:

1. Producers of renewable gases, understood as both operators of renewable gas production facilities and third parties operating an installation under a contract.
2. Suppliers of renewable gases, which are those holders that perform functions of renewable commercialisation of renewable gases.
3. Consumers of renewable gases, understood as those who directly manage their guarantees of origin, without the intermediation of a trader that supplies the energy.
4. Intermediaries of guarantees of origin, which are holders that do not fall under the above cases, and whose functionalities shall be limited to the transfer, import and export of guarantees of origin.

C) Measuring entity

The measuring entity is the legal entity in charge of collecting and determining the production and consumption values that apply in each case. The measuring entities must be approved by the responsible entity.

D) Auditing entity

The auditing entity is the legal entity, appointed by the producer and confirmed by the responsible entity, whose role is to ensure the truthfulness and accuracy of the information provided by the holders of renewable gases.

Registration in the system of guarantees of origin

Holders shall request registration in the system of guarantees of origin by means of a holder registration form through the guarantees of origin platform. Within one month of receipt of the initial request or the correction, if applicable, the responsible entity will establish an annotation account in the name of the applicant and will provide it with access credentials to the platform as a primary user. After that, the holder may complete the registration as a producer, supplier, or consumer of renewable gases, or as an intermediary of guarantees of origin.

Supervision and auditing of production facilities

The responsible entity is responsible for the supervision of renewable gas production facilities, which must maintain compliance with minimum requirements in order to be registered in the Register of gas production facilities from renewable sources.

It is compulsory for facilities to undergo periodic audits of the production activity by a company that must be registered in the Register of auditing companies.

Administration of the system of guarantees of origin

A guarantee of origin is an unalterable electronic document with a unique identification number. Guarantees of origin may be in different situations of validity, depending on which guarantees may be used for different transactions; thus, a distinction is made between:

1. Valid for transfer (the guarantee can move from one holder's account to another holder's account), redemption (association between consumption and the guarantee giving renewable origin to the energy consumed) and export (transfer of the guarantee to other countries).
2. Valid for redemption.
3. Exported.
4. Redeemed.
5. Revoked.
6. Expired.

From the time of issuance until 12 months after the production of the energy that gave rise to it, a guarantee of origin may be transferred, redeemed or exported.

Once this 12-month period has elapsed, the status of the guarantee changes, becoming valid only for redemption during the following 6 months (that is, redemption can be carried out during a maximum period of 18 months from the production of the energy that gave rise to the guarantee). Once this 12-month period has elapsed, the guarantee of origin will automatically expire and cannot be used for transfer or export.

Holders of guarantees of origin will be notified through the guarantee of origin platform when there is a change of status of their guarantee of origin as a result of an expiration process.

Expired guarantees of origin shall remain in the holder's account for four years.

Committee of Subjects of the System of Guarantees of Origin

The responsible entity shall set up a Committee of Subjects of the System of Guarantees of Origin ("CSSGO") for gas from renewable sources. The purpose of the CSSGO shall be to know and be informed at all times of the operation and management of the system of guarantees of origin, as well as to draw up and channel proposals for improving management processes to the MITECO.

Should you wish to know more about the new energy sector regulation contained in Order 1026/2022 and its possible implications, please do not hesitate to contact one of our experts listed below or your usual contact at Osborne Clarke.