Bridging the Gap: The Potential Mutual Recognition of Turkish I-RECs and European AIB GOs

Introduction

In the global quest for a cleaner energy future, tracking and validating renewable energy consumption has become paramount. Renewable Energy Certificates (RECs) play a crucial role in this process, providing proof that electricity has been generated from renewable sources. Turkey's embrace of the International Renewable Energy Certificate (I-REC) system and the European Union's established Guarantees of Origin (GOs), managed by the Association of Issuing Bodies (AIB), represent two distinct approaches to this validation.

However, unlike other I-REC Countries in Asia, Africa, and South America, Turkey is physically connected to the ENTSO-E power grid with the rest of Europe which is part of the AIB GO skim. Even more important, Turkey is part of the same synchronous zone in frequency that includes Continental Europe (same as the parts of the EU, Switzerland, and the rest of Balkan Western Balkans).

Logically, the question arises, whether these systems (I-REC and AIB) in the case of Turkey and the rest of Europe, although separated by geography and governance, but connected with the physical exchange of energy under the ENTSO-E power grid, ever become mutually recognizable? This article explores the potential pathways and challenges for such a convergence.

The Current Position

Turkey, with its burgeoning renewable energy sector, has adopted the I-REC as a standard measure to assert the renewable origin of its electricity. The I-REC system is recognized globally and provides a robust framework for certifying renewable energy outside the EU's purview.

Conversely, within the EU, the AIB's GO system is an accepted organization for tracking and trading renewable electricity, ensuring that energy consumers can confidently claim their consumption is green. The European Energy Certificate System (EECS) governs the GOs, ensuring consistency and reliability across Member States.

Today, electrical energy (literally electrons disconnected from their actual origin guaranteed by RECs), is traded cross-border (both exported and imported) between the neighbors: Turkey and EU countries, Bulgaria, and Greece since December 1st, 2015. This implies that the power mix of Turkish electricity production is mixed and contingent on energy from the European Union and vice versa.

Further, the total power mix of the 100% closed system of the European power grid in addition to the EU zone includes Switzerland, the UK, Norway, Ireland, Ukraine, Western Balkans, but that is not the scope of this article (Turkey relates to I-REC skim and the remaining part is AIB GO). However, the physical interconnection of electricity grids, like within ENTSO-E, necessitates the consolidation and monitoring (tracking) of all cross-border transactions (power generation) within the closed power system. This is essential for verifying the accuracy of attributing the origin of national renewable energy consumption.

Compatibility of I-REC and AIB GO Skims

The compatibility of I-RECs and AIB GO registers in terms of standards is a complex and challenging endeavor that hinges on the harmonization of policy, regulatory frameworks, and tracking methodologies. While both systems aim to verify and ensure the renewable origin of energy, their governance, operational rules, and regional applicability are likely to differ.

Achieving compatibility of RECs tracking skim on a wide area of ENTSO-E network, and to include Turkey, from today prospectives would necessitate collaboration between the I-REC Standard and AIB to align on crucial aspects such as certificate issuance, reporting, and the prevention of double counting. This would involve not only technical integration but also politics apparently and that means also mutual recognition of environmental attributes and the establishment of bilateral or multilateral agreements to ensure that certificates from one system are acknowledged as equivalent within the other. A similar process of mutual GOs recognition is already ongoing under the umbrella of the Energy Community for Countries of Western Balkans.

With concerted efforts and international cooperation, it is conceivable that these registers could evolve to be compatible in standards, facilitating a more cohesive market for renewable energy certificates along the ENTSO-E power grid.

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Challenges to Mutual Recognition

For mutual recognition of Turkish I-RECs and European AIB GOs, several challenges must be addressed:

Regulatory Harmonization - Standards and regulations governing RECs differ between the I-REC system and the AIB's GO system. Mutual recognition would require harmonization of these standards to ensure certificates represent equivalent environmental attributes.

Prevention of Double Counting - A foundational principle in renewable energy tracking is that a single megawatt-hour (MWh) of renewable energy cannot be claimed twice. Robust systems must be in place to ensure that once a certificate from one system is recognized in another, it cannot be reused.

Legal Frameworks - The EU's legal framework, article 19 of RED II, currently does not recognize non-EU GOs certificates for regulatory compliance unless an agreement is in place (between EU and Turkey) and physical connectivity (it is fulfilled). Either compliance of Turkey with it or changes to this framework would be necessary for European entities to claim renewable energy consumption using imported Turkish I-RECs.

Stakeholder Acceptance - Both energy producers and consumers, along with regulatory bodies, must trust the integrity of the other system's certificates. This trust is built on transparency, reliability, and a track record of preventing fraud and errors.

Pathways to Recognition

Despite challenges, pathways to mutual recognition exist:

Bilateral Agreements - Turkey and the EU, or individual EU countries, could enter into agreements recognizing the equivalency of each other's certificates, possibly starting with pilot projects or specific sectors. This characterizes the current state of the Western Balkans integration process, as well.

Technical Integration - ?The I-REC and AIB systems could develop technical solutions for certificate tracking and cancellation that ensure integrity across both platforms.

Policy Evolution - As international collaboration on climate goals intensifies, policies may evolve to support broader recognition of renewable energy certifications, paving the way for mutual recognition.

International Standards - International organizations like the RECS ( https://recs.org/ ) or the bodies like International Renewable Energy Agency IRENA ( https://www.irena.org/ ) could facilitate the development of universal standards for RECs, making mutual recognition more straightforward.

Conclusion

While there are significant hurdles to the mutual recognition of Turkish I-RECs and European AIB GOs, the potential benefits in terms of market expansion and the acceleration of renewable energy adoption are considerable. As the world moves closer to a unified stance on climate action, the mechanisms for renewable energy certification may become more standardized, making mutual recognition a more achievable goal. The journey towards this end will undoubtedly require collaboration, innovation, and a shared commitment to a sustainable energy future.

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