EPHZHB to roll out green electricity supply with guarantees of origin

Public power utility Elektroprivreda HZHB Mostar (EPHZHB) is set to introduce green models of electricity supply that include guarantees of origin for renewable energy. Guarantees of origin for renewable sources, for which there is growing interest, will be available from the beginning of next year, at 0.05 pfennigs (EUR 0.026) per kilowatt hour.

As of 1 January 2023, EPHZHB will market the so-called “green models,” which will be available to all electricity consumers except households, the power utility said, noting that there is increasing interest among its customers in guarantees of origin for energy from renewable sources.

Consumers who decide to contract a green model with EPHZHB will be able to obtain guarantees that the delivered electricity is fully produced in power plants that use renewable energy sources, said the Mostar-based company.

A fee of 0.05 pfennigs per kWh will be charged under the green models

Customers who decide to contract green models will be charged a fee of 0.05 pfennigs kWh of electricity they consume. For this price difference, they will obtain guarantees that the electricity delivered to them is fully covered by guarantees of origin issued by the Renewable Energy and Efficient Cogeneration Operator (OIEiUK).

The Law on the Use of Renewable Energy Sources and Efficient Cogeneration in the Federation of BiH stipulates that the authorized body, in this case, the OIEiUK Operator, must issue guarantees of origin for electricity to be verified as renewable.

Large numbers of customers request guarantees of origin for various reasons

Elektroprivreda HZHB says it has received a large number of requests for guarantees of origin in the past few months. Consumers ask for guarantees for various reasons, the power utility said, noting that the buyer of electricity can potentially achieve multiple benefits by contracting such models.

In the global context, the dominant business model is to operate with a reduced carbon footprint

In the global context, business models with a reduced carbon footprint in final products, as well as socially responsible operations, sustainability, and the fight against climate change, have become dominant. Therefore, international companies that have branches in Bosnia and Herzegovina demand to be supplied with electricity produced from renewable sources at the local level.

EPHZHB recalls it is the only power company in Bosnia and Herzegovina that produces electricity exclusively from renewable sources, noting, however, that during summer months electricity must sometimes be purchased on the market.

A product labelled “renewable” can be marketed under significantly better conditions. Also, certain commercial banks offer more favorable lending terms to companies whose operations are based on sustainable development principles, noted EPHZHB. Customers supplied under EPHZHB’s green models may, during the term of the contract, use a protected seal issued by the power utility for marketing purposes.

Guarantees of origin should be in line with European standards

Renewable energy expert at the Energy Community Secretariat Naida Taso pointed out that “guarantees of origin issued by the OIEiUK Operator in the Federation of Bosnia and Herzegovina do not comply with the European standard and obligations from RED II”.

Energy Community Contracting Parties under the EU’s Renewable Energy Directive (RED II) have obligations to establish a national electronic registry and start issuing guarantees of origin.

Early this year, Secretariat introduced the project of national registries and a regional trading scheme for guarantees of origin in accordance with EU rules. The Secretariat hired energy certificate registry provider Grexel.

Taso said that a contract with Grexel can be signed for issuing valid guarantees of origin, and the register developed during a regional project implemented by the Energy Community could be used.