|Policy status:||In Force|
|Policy Type:||Economic Instruments>Market-based instruments>GHG emissions trading, Regulatory Instruments>Obligation schemes , Economic Instruments>Market-based instruments, Economic Instruments>Market-based instruments>White certificates|
|Policy Target:||Energy Sector>CHP|
|Agency:||The Flemish Regulator (VREG)|
|Legal References:||Energy Decree of May 2009|
|Penalty:||EUR 41 per missing CHP certificate, reduced to EUR 38 as of 2016|
To encourage the production of combined heat and power (CHP), the Flemish government established a system of CHP certificates. A CHP-certificate is issued per 1 MWh of energy saved in comparison with traditional electricity and heat production.
Every electricity supplier has the obligation to buy a certain amount of CHP-certificates and is obligated to surrender these certificates on an annual basis to the Flemish Regulator in order to comply with this obligation. The number of certificates is determined based on a percentage of the supplier's total production. If targets are not met they are fined. These fines go into a Renewable Energy Fund.
Network operators and power producers submit data monthly to the Flemish energy regulator (VREG), including net production and injection of electricity from CHP. This allows VREG to calculate the energy saved from CHP production compared to production in a reference boiler and facility. For CHP producers, it also allows VREG to provide them with a guarantee of origin certificate and provide CHP certificates to meet obligations. CHP producers can sell CHP certificates to their distribution system operator for a regulated minimum price. They can, along with any other entity possessing CHP certificates, such as network operators, also sell their certificates on the market to traders or suppliers, at a market-determined price.
In 2012 a reform of the system was initiated, which will become into effect from 2013. From 2013, the number of certificates an operator will receive for each MWh energy saved by a CHP-installation, will depend on the unprofitable top (difference between production price and market price for energy) and a banding factor.
Last modified: Tue, 29 Apr 2014 14:27:07 CEST