Independent Bulgarian Energy Exchange said it would organize a market for guarantees of origin of electricity in line with the amendments to the relevant law.
In an extraordinary issue of Bulgaria’s State Gazette on February 2, the recently adopted changes to the Energy Act have been promulgated. According to the amendments, the license holder for organizing a power exchange is obligated to organize a market for guarantees of origin or GOs, IBEX said.
„In view of the growing drive of the European companies to reduce their carbon footprint, guarantees of origin are becoming a popular tool to promote the production and consumption of RES energy while guaranteeing its origin,“ Chief Executive Officer Konstantin Konstantinov said.
IBEX is the only licensed exchange operator for electricity in the country, and in this sense it can guarantee the concluded transactions and create a new market segment in accordance with international standards, the announcement adds.
Guarantees of origin certify that electricity comes from renewable sources
The company said it already took steps toward implementing a trading platform for the new product. The creation of an objective, transparent and effectively functioning market for guarantees of origin is one of the priorities for the current year, IBEX added.
Guarantees of origin certify that electricity comes from renewable sources. Their number or, more accurately, volume depends on green energy production within a certain market.
IBEX is the only licensed exchange operator for electricity in Bulgaria
They are auctioned and traded, so a rise in demand and weaker renewable electricity supply normally lead to a rise in prices. Guarantees of origin are one of the ways for corporate consumers and state institutions, for example, to verify that they are not consuming power generated using fossil fuels.
The European Power Exchange (EPEX SPOT), European Energy Exchange (EEX) and European Commodity Clearing (ECC) held the first auction in September as part of the launch of the only pan-European market for GOs so far. It is the first secondary market for guarantees of origin, involving no primary allocation by states but only trading of previously emitted certificates.