Granular Certificates Guide

Why Do We Need Granular Certificates?

Today, we face the challenge of ineffective clean energy claims as consumption is matched to production annual and often from places where electricity cannot even be delivered. Granular Certificates (i.e GCs or T-EACs), revolutionize energy certificates by telling us the time of production, enabling matching of consumption with clean power production by the hour.

This is next frontier of clean energy sourcing and will be enabled by time-stamped Granular Certificates. Robust empirical research from the International Energy Agency, Princeton University, and MIT supports this approach and its various benefits:

Enables consumers to drive deep decarbonization of the grid – every hour.
Enables the production of clean products, like hydrogen, without any fossil reliance.
Provides more transparency by linking production to consumption in ‘real-time’.
Supports storage and flexibility by providing a new price signal.
Facilitates better risk management by avoiding volatile fossil-based electricity pricing.

The illustration below shows us how much more transparent GCs are.

Refer to Granular Accounting in GHG Protocol and EnergyTag’s Blog on the Feasibility of Granular Certificates for detailed explanation of the problem and its solution.

How Granular Certificates Work?

Granular Certification Scheme

The figure above shows the overview of all the roles for the Granular Certificate Scheme under the EnergyTag Scheme Standard. The process of energy flows physically from Producer to Consumer and data flow from GC issuer/Consumer to Matcher to Claim verifier is self-explanatory in the figure above.

Definitions of Roles

Producer: The owner of a Production Device which is valid for GC Issuance.
Granular Certificate Issuer (GC Issuer): A Granular Certificate Issuer is an organization responsible for the administration of the Granular Certificates within a Domain for an Energy Carrier, ensuring the avoidance of Double Counting of the Attributes represented by the Granular Certificates it administers throughout their lifetime.
Consumer: The final beneficiary of GC/EAC cancellation and potentially the user of associated consumed energy.
GC Matcher (or GC-Consumption Matcher) (or Matcher): An organization that matches the Attributes of canceled GCs to a specific quantity of energy consumption of a specific Consumer/Supplier, with a view to determining the content of a GC Matching Claim.
Claim Verifier (or GC Claim Verifier): An organization checking that Granular Certificates (GCs) are canceled against the energy consumption measured at one or a group of multiple Consumption Points in compliance with the Matching rules in this standard and the guidelines in the GC Use Case Guidelines.

Who Needs to Use Which Standard?

Configurations for Granular Certificate Issuance

It is crucial to have a robust mechanism for involving GC issuance and cancellation from the present EAC Market. GC issuance is either offered by an existing EAC Issuer (“Config 1”) or 3rd party based on underlying EACs (“Config 2 or 3”).

EnergyTag Configurations Overview

Configuration #1 - GC Scheme evolves out of EAC Scheme: the GC Scheme is an evolution of an existing EAC Scheme such that the currently operating EAC Issuing Body evolves into a GC Issuer,
Configuration #2 - GC Scheme supplements EAC Scheme: the GC Scheme is an extension of an existing EAC Scheme and is managed by verified and approved third parties. Tasks and responsibilities related to the GC Scheme are performed by third-party entities in compliance with the rules and oversight of the existing EAC Scheme and EAC Issuing Body.
Configuration #3 - GC Scheme is based on Canceled EACs: this GC Scheme enables GC Issuance where the EAC Issuing body does not oversee the coordination with GCs for the same production. Instead, the GC Issuer takes such coordination upon itself. This involves canceling GCs upon their Issuance, for the same beneficiary as the beneficiary of the associated EACs for the same represented energy.

Crucial Attributes of Granular Certificates

Matching and Claiming Granular Certificates

GC Matching Standard deals with the procedure to be followed for matching consumption with production and then enabling matching claims based on issued GCs. Standard also describes the roles and responsibilities of the Matcher and Claim Verifier.

The figure below shows the process of matching and claiming to be followed for making claims EnergyTag Compliant.

Implementation of Granular Certificates

For a robust implementation of Granular Certificates, please refer to the EnergyTag GC Scheme and Matching Standard.

Scheme Standard Outline

Section	Abstract
1.1 Roles	A brief overview of Roles in GC Schemes. Requirements to be fulfilled by Account Holder, GC Issuer, Production Registrar, GC Registry Operator, Measurement Body, and Accreditation.
1.2 Scheme Configurations	Provides background with the current EAC scheme. Proposes three new different GC scheme configurations along with six types of double counting risks to be mitigated. Lays down five major steps with requirements under each configuration explaining how GCs are to be issued, traded, and canceled.
1.3 Granular Certificate Attributes	Illustrates key requirements that need to be taken into consideration while defining GC attributes.
1.4 Time Zones	Highlights the importance of time zone harmonization across the globe and the requirements to be met for the same.
1.5 Producer Metering and Registration Data	Represents all the general requirements and requirements specific to the categories: production device data, production data, storage data, and data transfer.
1.6 Energy Storage	Detailed storage schematic for GC schemes highlighting flow from GCs to SCRs to SCRs to SD-GCs along with requirements to be met. This section also deep dives into various SCR-SDR allocation methodologies and storage losses that must be taken into account.
1.7. Granular Certificate Validity Period	Focuses on GC validity period elaborating the importance of having a validity period along with requirements.
1.8 IT Systems Architecture	Points out the significance of data standardization for GC scheme interoperability along with requirements to be fulfilled for the same. Comments about the development of the EnergyTag API (Application Programming Interface) Standard.
1.9 Fraud Detection and Prevention	List seven frauds that could happen at various parts of the process. Includes all the requirements that need to be followed to avoid each of the frauds.
1.10 Market Design	Refers to the significance of GC trading and market along with comparison with physical energy trading and market. Lays down requirements for market design for GCs.
1.11 Linkage with Support Systems	Indicates the need for a linkage between public financial support and GC schemes and requirements to be fulfilled.
1.12 Eligibility of Energy	Discusses the topic of energy eligibility for the generation of GCs. Explains four major categories – distribution reach, definition of auxiliary demand, primary energy source, T&D losses, and congestion under which energy eligibility may be considered.
1.13 Error Handling for Ex-post Corrections of Meter Data	Call attention to errors that happen post corrections of meter data. and how those errors need to be handled.

Matching Standard Outline

Section	Abstract
1.1 Roles	A brief overview of Roles in GC Schemes. Requirements to be fulfilled by Account Holder, GC Issuer, Production Registrar, GC Registry Operator, Measurement Body, and Accreditation.
1.2 Matching GCs with Energy Consumption	Details on GC Matching Schematic highlighting roles of matcher and claim verifier along with the procedure to be followed for matching GCs and then claim disclosure. Requirements for being a matcher and claim verifier. Explains types of Matching - Temporal, Geographical, and Attributes.
1.3 Consumption Metering and Registration Data for Matching	Discusses the requirements for recording consumption data and Data Transfer.
1.4 Fraud Detection and Prevention	List seven frauds that could happen at various parts of the process. Includes all the requirements that need to be followed to avoid each of the frauds.