2016 DEDICATED ANNUAL REPORT Developments in the green certificates market TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ................................................................................................................................................................ 4 2. GREEN ELECTRICITY SUPPORT MECHANISM APPLICABLE IN 2016 ............................................................................... 6 2.1. Development objectives for green electricity in Wallonia ............................................................................................ 6 2.2. Operating principles of the GC mechanism .................................................................................................................... 8 2.2.1. Definitions and rules in effect for the generation of green electricity ........................................................ 11 2.2.2. Procedures relating to the GC mechanism ..................................................................................................... 12 2.2.2.1. GC allocations ....................................................................................................................................... 13 2.2.2.2. Calculation of the granting rate, reference rate of return, metering code ................................. 14 2.2.2.3. Level of support .................................................................................................................................... 17 2.2.2.4. Reservation ............................................................................................................................................ 18 2.2.2.5. Certification of the generation site (CGO)........................................................................................ 18 2.2.2.6. Review of k factors applied after 10 years and the support for the photovoltaic sector ....... 19 2.2.2.7. Specific measures relating to the biomethanisation sector and the solid biomass sector .. 23 2.2.2.8. Call for biomass proposals ................................................................................................................. 23 2.2.3. The GC market ...................................................................................................................................................... 24 2.2.3.1. Supply: granting of GC to green producers (order of the Walloon Government of 30 November 2006, art. 13) ..................................................................................................................... 24 2.2.3.2. Demand: return of the annual GC quota .......................................................................................... 25 2.2.3.3. Purchase guarantee systems for GC ............................................................................................... 29 2.2.3.4. Structure of the market ....................................................................................................................... 30 2.2.3.5. Passing on of the PSO cost to end customers .............................................................................. 32 2.3. Direct electricity lines ........................................................................................................................................................ 35 2.4. Cross-functional committee on biomass (CTB) .......................................................................................................... 35 3. DEVELOPMENTS IN GREEN ELECTRICITY GENERATION FACILITIES IN 2016............................................................. 36 3.1. Developments on sites generating more than 10 kW ................................................................................................ 36 3.2. Development of sites generating up to 10 kW ............................................................................................................ 38 3.2.1. Photovoltaic installations up to 10 kW ............................................................................................................. 38 3.2.1.1. Photovoltaic installations – SOLWATT ............................................................................................ 38 3.2.1.2. Photovoltaic installations – QUALIWATT........................................................................................ 38 3.2.2. Other sectors up to 10 kW .................................................................................................................................. 39 3.3. Generation facilities ........................................................................................................................................................... 40 3.4. Green electricity generation ............................................................................................................................................. 41 3.4.1. Green electricity generation audit ..................................................................................................................... 41 3.4.2. Developments in production by sector over the period 2015-2016 ........................................................... 42 3.4.3. Focus on the biomass sector ............................................................................................................................. 46 3.4.3.1. Classification of biomass types ........................................................................................................ 46 3.4.3.2. Classification of installations ............................................................................................................. 46 3.4.3.3. Biomass audit 2016 ............................................................................................................................. 47 3.4.3.4. Solid biomass ........................................................................................................................................ 49 3.4.3.5. Biogas ..................................................................................................................................................... 52 3.4.3.6. Liquid biomass ...................................................................................................................................... 53 3.5. Green electricity generation in relation to electricity supply ..................................................................................... 53 3.6. Level of support by sector ................................................................................................................................................ 54 4. GC MARKET .................................................................................................................................................................................. 58 4.1. Granting of GCs .................................................................................................................................................................. 58 4.1.1. Developments over the period 2003-2016 ...................................................................................................... 58 4.1.2. Developments in 2016 ......................................................................................................................................... 60 4.1.2.1. Sites generating more than 10 kW ................................................................................................... 60 4.1.2.2. Sites generating less than 10 kW ...................................................................................................... 61 4.2. Sale of GCs .......................................................................................................................................................................... 63 4.2.1. GC transactions .................................................................................................................................................... 63 4.2.2. Sales options for GCs .......................................................................................................................................... 65 4.2.3. Price developments .............................................................................................................................................. 69 4.2.3.1. Photovoltaic sector generating less than 10 kW ........................................................................... 72 4.2.3.2. Sectors generating more than 10 kW .............................................................................................. 73 4.3. Cancellation of GCs with a view to meeting the quota return obligation ............................................................... 74 4.4. Development of GCs in circulation (supply) ................................................................................................................. 76 5. GC QUOTA APPLICATION .......................................................................................................................................................... 77 5.1. Nominal GC quota in Wallonia ........................................................................................................................................ 77 5.2. GC quota reductions ......................................................................................................................................................... 78 5.3. Effective quotas applicable to suppliers and DSO .....................................................................................................