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Green Energy and CRC - or is that light brown?

Mark
posted this on July 27, 2010 18:11

The thorny issue of brown, light brown and green electricity for CRC........

Under the CRC Order the value of any electricity credits can be subtracted from a CRC participant's 'total emissions' and 'footprint emissions', reducing their CRC liabilities overall  (refer to articles 30 and 41).

An electricity credit arises where (article 31):

 -           a person generates electricity; and

 -           is not issued with a ROC or financial incentive under s41 of the Energy Act 08; and

 -           generation does not occur at an EU ETS facility, nuclear station or hydro station; and

 -           supplies that electricity to a public body or undertaking; and

 -           the supply meets the definition of supply set out in paragraph 1 or 6 of Schedule 1.

The key is that the supply must be to a public body or undertaking and so the developer/generator needs to ensure this.

So if your green electricity has come from a well know electricity supplier and its getting a subsidy through ROCs or FITs then it will only be light brown in the scheme of all things CRC.