Estimating tradeable certificates created by small-scale renewable energy systems

 

Recent industry development programs in several countries have involved the use of tradeable certificate schemes as means for electricity generators and retailers to fulfil mandatory requirements for renewable energy generation. Renewable energy generation will potentially also yield carbon offsets under domestic emissions constraints involving emissions trading schemes. This paper develops a novel framework for estimating the amount of renewable energy certificates and carbon emissions offsets that may be created by a wide range of small scale renewable energy systems. A methodology is developed that requires information on only two parameters of the generating system, namely the specific fuel consumptions of the renewable energy system and an appropriate baseline system.

Keywords: Renewable energy, Market mechanisms, Emissions trading, Modelling