No-deal Brexit will exclude 120 TWh from GO market

Aug 19, 2020 | Green Power Hub

The UK’s growing output of Guarantees of Origin (REGOS) will be excluded from the European market when the transition period for leaving the EU ends this year, according to a European Commission notice to stakeholders.

The UK produced nearly 120 TWh of renewable power in 2019. This output was covered by the country’s REGO scheme and recognised by the European Union.

However, “After the end of the transition period, EU law on the promotion of the use of energy from renewable sources and on energy efficiency will no longer apply to the United Kingdom,” the EU Commissions’ notice said.

Published in July, the EC notice did not explicitly state that REGOs would be excluded from the European market exclusively in a no-deal scenario.

However, the UK regulator Ofgem’s position is that “REGOs issued in the UK will no longer be recognised by EU member states after exit day in a no deal scenario.” The regulator has also said that the UK “…will continue to issue REGOs and accept guarantees of origin (GoOs) from EU member states after EU Exit Day,” meaning the UK could still generate demand for GOs.

Lawyers from the UK-based Osborne Clarke law firm echoed the position of Ofgem, saying that “unless a trade agreement is reached, guarantees of origin which are published by designated bodies in the UK will no longer be recognised by the EU Member States after the end of the transition period.”

UK renewable energy production has continued to grow and made up 47% of the country’s electricity mix in Q1 this year, up from a previous quarterly record of 39%, mainly due to higher output from offshore wind farms.

Sources:

https://ec.europa.eu/info/publications/energy-guarantees-origin-and-certification-installers_en 

https://www.lexology.com/library/detail.aspx?g=226e2c07-c434-4e99-bab6-9e4e37b71a1b 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877047/Press_Notice_March_2020.pdf