GCS process An overall stepwise process of aGCS includes the following steps:· The Government (e.g.
the Ministry of Energy)sets the obligation on electricity suppliers for the compliance period (oryear).· Eligible renewable electricity generators reportthe amount of renewable electricity they generate monthly to the EnergyRegulator. · The Energy Regulator issues the correspondingnumber of certificates to electricity generators. Certificates are issued whenthe electricity is registered in the meter. Each certificate must be unique andseparately identifiable to avoid any possibility of a double counting.· Generators can sell their certificates toobligated participants or other authorized voluntary participants, which grantsthem an additional income to the wholesale electricity price.
· Obligated entities present their certificates tothe Energy Regulator to demonstrate their compliance with their renewableenergy requirements. In case an obligated entity has a shortfall ofcertificates, it will have to pay a penalty. Certificates are withdrawn fromcirculation, and cannot be used again when an obligated entity accounts it tofulfil its obligations. Additionally, certificates may also have an expirationdate. · The financial resources collected by the EnergyRegulator due to the pay of penalties can be re-distributed to suppliers whopresented certificates.
Usually, governments establish anelectronic tracking system to verify certificates’ claims. To do this,governments can either contract a third-party to build a system or may decideto use a pre-existing tracking system. In general, this type of system must becapable of performing the following actions:1. Certificatesissuance2. Process verification3.
Certificatesregistration and trading4. Marketexchange5. Certificatesbanking6. Certificateswithdrawing Each certificate issued by a trackingsystem typically includes the following information:· Facility location· Generation technology· Facility owner· Fuel type· Nameplate capacity· Year the facility began operating· Month/year the MWh was generated· Tracking system ID· Project name (Environmental Protection Agency, 2018)