FaStGO Stakeholder Workshop 29 October 2020

0:01 hello everybody this is the fast go uh latest webinar thanks a lot for um for attending here just a second you're very welcome in our october webinar on further upgrades for the european system for guarantees of origin we are a full team of experts who have worked for the majority of this year very hard on different aspects that relates to the guarantee of origin system upgrade and we are happy to be with you today and that you are here with us looking at how to further improve the system on the next slide i i'm happy to present you the program uh of uh today which

0:48 shows you that actually we will have four parts of today's webinar the majority of of our session will be um before the break uh we have two hours before the break and then about one hour um after the break um we will first frame a little bit the project again for those who are uh not very familiar with the details of the fasco project and by an introduction by henrikh dham from the european commission and then we will go into the details of uh the task packages that this project has been working on and immediately we pass on to the second part that's on upgrading the jio market statistics where adam white markus limchesky and elizabeth switton will present aspects that we've been looking into in the fasco project and after that you are

1:35 welcome to in a q a session share your ideas and also and through a poll participate a little bit in the thinking then we go to a session on the residual mix especially dedicated to first starts on the residual mix for non-electrical energy carriers markus kimchevsky is there for us and then we have a short break for 15 minutes um and then the second part will be dedicated to the vision for i.t systems for cross-border transfer of guarantees of origin phil moody will present the vision on idea infrastructure and then marco ledovara goes into data transfer protocol and high level system design specifications basic considerations for that after both sessions we will have q a

2:20 sessions as well a short poll to interact with you but also all the time during the session we will uh welcoming your specific questions in the question box after a closure session around four o'clock we hope to wrap up and next slide shows a little bit of technical assistance find in your technical frame of this webinar frame on handouts and there you find the program again and also something on the netiquette for a webinar how to ask questions to our speakers given that we are more than 150 attendees registered we cannot um overspeak each other so

3:07 by default we ask you to ask your questions through the q a um box to the box questions and um let me try to address them in the oral q a sessions some questions may also be addressed after the oral q a but in writing by the panelists if your question is after that also not addressed in this webinar feel always very welcome to address us on our email address fasco aibnet.org further if you need technical assistance during the webinar andrea is helping you with our your private questions in the toolbox questions are at fasco tutorial we will share the slides and recording afterwards one slide ahead

3:53 shows you a little bit uh who registered this morning for this webinar and it's a pleasure to see that this morning there were 151 registrants who spent their afternoon here together with us seeing here what type of people what background of people are gathered here together in this uh electronic uh webinar is uh interesting uh we see that given uh it's not um weird that given the fact that the geosystem has been well established in electricity that there is a big part of the audience coming from the electricity sector and also different types of roles being engaged here um also a bit of engagement or quite some

4:38 engagement from the gas sector the heating and cooling specific sectors are less represented but there are attendees from those sectors and it's also really good to see that several quite a lot of stakeholders are already engaged in multiple energy carriers and that's basically what we are preparing for for a multi-energy carrier certificate system so that's really nice to see we see also that there are a lot of traders present also quite some issuing bodies um and a lot of other parties so we will be interested also to learn from other parties next slide please i i just want to invite you today for an enjoyable webinar i hope we can serve

5:24 your hunger for some information on the future but i definitely hope that we can also collect some of your thoughts on what we are doing and your suggestions for our further future developments that being said i would like to invite henrik thumb to a little bit frame the setting of this project how it came that we have come to organize the fast go project thank you catherine um am i yeah i'm the one on on the screen now okay thank you very much so um what i want to do here is to provide a slight frame of uh why the the fasco project was

6:09 initiated it has now been working for almost 11 months and the european commission launched it to provide technical support for the facilitation of the standardization process and to ensure an effective migration of the technical infrastructure with the competent bodies this is done in parallel and coordinated with the formal standardization process uh in the sen cenelec working group i think we are all aware that the timeline is very challenging for

6:56 the standardization today we have a guarantee of origin system mainly built around the eecs standard from the association of issuing bodies and currently dealing with millions of electricity geos on an additional basis on the 30th of june 2021 all member states shall have implemented the red 2 into their national legislation and we need to be able to issue transfer and cancel nego new duos not only for electricity but also for gases and heating and cooling and those geos will

7:42 need to be compliant with the 16 325 standard the fast go service contract have made very significant contributions and for instance provided a draft text for the first complete revised draft of the 16325 standard that complies with this new legislative framework that we have in the renewable energy directive this you had based on a thorough technical analysis and a wide stakeholder consultation the workshop of today

8:27 is focused a bit more on the supporting framework for the guaranteed of origin system such as the statistical monitoring the necessary infrastructure and the residual mix calculations which are very important for the reliable consumer disclosure statements catrin already presented the agenda that we have ahead of us today um and i see also the very wide interest from uh stakeholders with more than 150 participants so on this basis i will uh wish you all the best for the exchange for the further exchanges this afternoon thank you

9:17 thank you very much henry it's an honor that the project officer from the european commission uh of this project uh sets the the framework again and also um that the european commission has made this project possible um and helped this allows the this project to help um the geo system get an upgrade through a lot of experts who could think together and who could organize a lot of stakeholder consultation um project outline of this uh of this whole uh one-year project um looks a bit like this um so we have a service contract with dg enter from the european commission titled um technical support for risk

10:03 policy development and implementation establishing technical requirements and facilitating the standardization process for guarantees of origin based on red two and briefly that is abbreviated as facilitating standards of guarantees of origin and that for that we made an acronym as fast go it also relates to the fact that we had to move pretty fast in terms of time um with a lot of organizations who together gather experts in the field and aib the association of issuing bodies leads the project and cooperates with ercas where there is a lot of expertise on biomethane and especially mass balancing um initio the

10:48 project is also of the certified project where uh scheme for guarantees of origin for hydrogen had been set out in the past and where the second the third part of that project will be launched is about the launch these days um rex international the traders association uh on renewable energy certificates certified dutch issuing body which brings in a lot of expertise for the standardization of cavities of origin gaia consulting also on the same pathway and also bringing in a lot of experience on residual mix and general guarantee of origin expertise grexel strong value in terms of id system support and in general system design

11:34 thinking the european energy exchange supports us mostly on the fat fraud prevention measures they are also an issuing body in france and the european biogas association is there always to count on for a lot of support especially in a stakeholder consultation this cooperation in itself also allowed these experts from these associations together to to cooperate very well um we have six task packages and um i dive into them by saying that our project mission is to establish an upgraded uh geo system to through a cost efficient implementation of the renewable energy

12:20 directive in the member states and facilitate standardization of guarantees of origin in the en16325 standard from the sense and alec our task packages basically support this mission and i can inform you a little bit about the status update of where we are today so our project started um ends of december 2019 and ends 15th of december 2020 um [Music] task one was about mapping the currently existing standardization frameworks and uh allowed us to compare the existing en16325 standard with the x rule so the european energy certificate system established by the aib it was already originally

13:07 based on that standard and there were upgrades made to the x rules and it was relevant to consider those for the en16325 it was also compared with renewable energy directive and a lot of work was done on identifying the main challenges in the management of guarantee of origin systems we then in task 2 developed a text proposal on this revised en16325 standard as an input for the further discussions in sen this text proposal was consulted and updated after consultation and you find the full analysis that led to that final text also on the on the websites of

13:53 fasco um what we can say is that it has been taken into as an input in the latest comedy draft in senelek um which is then of course further being discussed and also instead further uh adjustments are being made but it is um based on that text that further discussions are being conducted in sen i.t system development um we did work so that's our task three um and we have three subtasks in uh in that one we finalized already a report on the vision for the future i.t infrastructure for guarantees of origin in europe and phil moody will present that today and we also finalize the report with a data protocol for multi-energy carrier and

14:38 multi-purpose certificates the data protocol is a pretty essential aspect in cross-border transfer so it's good that there's a basis for consideration in facilitating those transfers what is under development is the last part and it's a high-level system requirement specification and narcoletovara will also today introduce us a little bit in the main consideration there so then the the final part we are working on is our tasks four and five plus four is about um for 4.1 is on specifications for statistics that are published at eu level and at member state level and task 4.2 relates to an update of the residual

15:25 mix calculation method and as marcus will explain today there was first the consultation of the updated residual mix calculation for electricity and um now we are working on a report for non-electrical energy carriers and how to consider the residual mix for gas hydrogen and heating and cooling mid november we will supply these two reports so your inputs on these two topics today are very uh welcome if we have to further take into account something please let us know task 5 is a restricted dissemination level it's on methodologies for enhanced prevention of financial fraud and you'll understand that that's contains recommendations especially directed to issuing bodies and tax

16:10 threats tax authorities um so the that report is under development in a restricted circle and being consulted in a restricted circle and then we have a lot of work done in stakeholder consultation we did a lot of broad stakeholder consultations of several draft reports with white stakeholder [Music] audience many of you today present here have contributed to that and we are really grateful for that engagement because we try to take your concerns into account in our developments and to balance them out against potential concerns from from parties with other views and to find a joint um way forward from the mapping of

16:57 the landscape that we can get out of there so thanks a lot for your contributions we also consulted some draft reports amongst issuing bodies especially those reports that relate to their work and we organized uh three stakeholder workshops um today being the last one of those um thank you a lot for joining i would say enjoy the rest of the program today um and i'm really happy that we can now dive into the content and we can look into the work that we have been doing on the statistics for um for guarantees of origin and that's how i will invite adam white the director of rex international um to

17:43 present a little bit as a step up the results of the survey that has been conducted in that area welcome adam thanks katrin thanks for the opportunity can i just check everyone can see the slides on the screen is that clear yeah okay so this presentation is relatively brief uh reporting the results of the survey on potential enhancement to geostatistics i'll start with a quick overview of the statistics that are currently available then i'll go through the results relatively quickly i'll warn you now that i'll i'll skip through the size quite quickly there's really two groups of answers one where the the answers were quite clear and then one where the

18:29 responses were much more equivocal and then i'll draw some conclusions so firstly these are the some of the aib uh statistics that are currently available you can see this uh for example annual each transactions by transaction dates monthly imports per country cancellation data and so on and all of these can be found on the aib website so i would encourage you to go there and we can see that there's a lot of detail there already there are some other sources of statistics for example rex international uh where i'm director published or has been able to publish annual market reports but we'll discuss a bit later why it's been harder to produce this kind of data in an aggregated format for the whole european market and not just

19:15 the aib eeks sector of that market so on the survey responses you can see that as regards the sector of operation there's a good balance between those working with the electricity and gas sectors and as i said from now on i'll go pretty quickly before i start to speak about the conclusions we can see there's also a good spread of areas of activity of the respondents and it should be noted in particular that issuing bodies is the biggest single block of area of activity of the respondents and we need to remember there are also important constituency for aib data whilst they contribute to it it's a clear signal that aib data is used quarterly which is logical since it's updated quarterly

20:01 also clear signal that survey respondents do use other data sources than the aib data again aib statistics are clearly used for gaining an overview of the market that's the biggest use from the respondents to the survey and that the survey respondents are generally satisfied with the data content of these aib geostatistics and also on how the data is presented uh a lot of clear majority respondents were interested in the central collection of geostatistics from non-aib member countries and i reiterate from the dates the examples of data i showed at the beginning that from the aib is

20:47 only from member countries and that from rex was from the full european single market and again we'll talk about that in a bit more detail later so now this is when the answers become more equivocal and less clear for example it's not clear that the possibility of retrieving statistical data through an api is of interest to respondents as a whole it's also not clear that respondents would like to have more price information on geos with a split between those who find it important and not important also of the respondents who who answered the survey a majority didn't trade geos but

21:32 a majority of those who do trade geos said they wouldn't report their prices then it's also not clear whether the reporting basis for electricity geostatistics would also accommodate reporting needs for other energy carriers although a few respondents felt that it definitely wouldn't but a significant minority weren't sure so then on the conclusions to the survey data that we've been able to draw we think there's clear general support for the aib statistics and so and support for providing similar data from non-aib countries on the specifics of price data and apis and reporting basis as i mentioned there's less clarity and so we feel that it would be important to have more

22:18 engagement with stakeholders on these more complex points which have wide implications for geo markets and i'll speak about one of those implications now as an example so a commodity as i'm sure you'll know is an economic good that has full or substantial fundability that is that the market treats it as equivalent regardless of who's produced it or where it comes from and so that's like oil or corn or gold for example whereas a product by way of comparison is a specific item that can be offered to a market to satisfy consumers want or need and this is much more how we see renewable energy certificates which can be highly specified along the points that are that are mentioned there just as an example and so playing people's

23:05 advocate and not taking a a fixed position on this as director of rex we think that um price reporting can not necessarily realistically account for the specifics of a given rec certificate and it and therefore price support intends to work in categories like nordic hydro or european wind for example and then this can could encourage a view of geos more as groups of commodities and their specific products that are seeking to meet the needs of consumers and productization and consumer choice that comes with it could be considered as an important demand driver in rex markets and and seeing as boosting demand is crucial particularly in european uh certificate markets which

23:50 have uh have been long for quite a long time we think it's it's very important to be fully engaged with the whole stakeholder community on points such as this so that any action that is taken in an area such as price reporting uh really has the the full buy-in of both system operators and market participants to ensure we're doing everything we can to support the market so thank you very much for the opportunity and i look forward to the rest of the webinar thank you very much adam um that was a really good presentation of the results of the survey that we conducted in the course of september um i even want to invite the audience in

24:36 case you s you see question you have questions um you can start to ask them in the questions box you can find them with your with your controls um you can maybe that you have to make it a little bit bigger or you can swipe it uh extract make it a bit wider um but um you're very welcome to ask questions and we will address them after the three presentations after adam marcus and elizabeth the their related uh aspects on the statistics so um from there on i'm really happy to invite now markus klimszewski and to present what we've drawn out of uh of that survey with the fasco team thanks catherine and thanks adam that's exactly what my my presentation is about

25:23 so what did we take from the survey and combine with our own thinking to compile recommendations and firstly of course thank you very much for all that took the time to respond to the survey we gained a lot of valuable input and would not definitely have been able to produce this without the survey responses so what we did with the concrete proposals that we took from the open answers adam was showing you the multiple choice answers but we divided these open answers into seven categories firstly improving the usability of the current statistics not adding any new data but focusing on the usability then having new data elements as a second one

26:09 third having new tools for the statistical data and then besides those introducing new data elements from outside the x price information other energy carriers and then miscellaneous small modifications that didn't fit into these categories and we also assessed the time span and difficulty of implementing these these recommendation categories and i will now now give you a brief overview of what's inside of each of these categories i will not present everything but um but everything will be everything has been considered and is visible in the in the report so firstly on opportunity one uh improving the usability not adding any

26:54 new data these are the main proposals there were also some some minor ones but firstly there was clear tendency to have ready-made graphs for example in the excel file because oftentimes when you go to the statistics you want to have a certain graph so it would be good to be able to to modify that a little bit according to your needs and it could be drafted some proposals on what they could be in the in the report secondly uh a lot of respondents showed that the data in a pivot format would add value uh so we drafted what that could look like a little bit we put what how how could we arrange the data in pivot format and that would of course allow for dynamic altering of the graphs and use of slicers and filters to

27:42 dynamically interact with the with the data and then we could also add some analytics on historical data so showing key trends of how the market has grown how the volumes have grown from the energy source or per country then besides these under opportunity one there were some some regarding the legends and color color schemes and arrangement of data with what would be more logical order and and those have also been considered so for the recommendation for opportunity one is is to consider if we immediate implementation because this does not add any new data for the opportunity to which is introducing new data elements and categorization in in x geostatistics

28:27 there was a wish to get data by counterparty domain and production domain so separating the geo val volumes per originating domain of the production originating domain of the transaction and receiving domain of the transaction then secondly also expanding on on what what is reported we could split the volumes by whether or not the production has received support uh regarding pdhpd technology pv capacity range so significantly expanding the granularity of the data by new new splitting the volumes in different different ways then perhaps more easily data on number of transactions besides just the number of volumes of geos traded so or or

29:15 average size per transaction and then some general information which is already partly available in the annual report of aib such as how many account holders in the domain how many production devices and what's aggregate capacity etc regarding these recommendations it's important to remember the constraints so these do require a collection of additional information and especially for one and two there is a strong caveat for the data confidentiality so we don't want to reveal information on individual account holders or trades and also again on one and two these might exceed the limits of what excel can do because the data is so so massive so so

30:00 that also has to be taken into account recommendation is to carefully weigh the expected benefits with associated cost and and confidentiality and potentially introduce these with them with new new system upgrades uh okay then number five including price information in the statistics this is a big big issue and that's why i raised this up in its its own graph so it's currently lacking apart from some centralized options and there's as adam showed there's diverging views of whether this would be useful in the first place so having a sense of what the market price of geos is this is challenging for several reasons as adam was mentioning but mostly because geo market is

30:47 dominated by bilateral trades so collecting reliable price information would require that each account holder uh report the value of the monetary value of the geo transaction and as adam mentioned geos are not a commodity product so a transaction might include several different types of geos with different values then of course the size of the transaction and the fact that there are forward contracts might affect but not not significantly so in order to have um price information reported we need a clearer mandate that this information is needed and then in order to collect it the issuing bodies would be would have to have the mandate to collect it it's not possible within the current framework

31:34 then i will introduce briefly the the three other categories firstly facilitating new tools for retrieving statistical data it's it's good to highlight that excel will would remain the the main tool but uh of course having having tools to retrieve the data into your back-end systems could help with the processing of the information with the work included and couldn't could help in increasing the amount of data for example the granularity of the data and this could be for example coupled with other updates if there's clear need for this introducing data from outside the aib so

32:19 adam also mentioned this they we need geostatistics throughout the single energy market and this is a call for the commission and then soviet national and thought authorities to to standardize the the statistical uh requirements that are needed for geos and also energy production data from the whole single market would greatly benefit the geo market because that helps us to understand the full potential volume of the geo market as well as what's the current market penetration of geos as well as it is critical for a residual mix this was used this was formally available through ncoe for electricity but not anymore and of course we would need it for the other energy carriers as well

33:06 then number six uh for other energy carriers uh this is of course now a smaller volume um but when we do start reporting this as probably is needed there needs to be a clear distinction by energy carrier and conversions energy carrier conversion should be reported separately and then there are elements to consider per energy carrier which might be important for for gas and and heating and cooling so what are high level recommendations based on on the work and and what we have compiled in the report uh so general constraints are that we need to keep details of individual trades or

33:52 market participants confidential and the increased amount of data can't jeopardize this and there's also technical limitations to what the issuing bodies can provide so we need to set the mandate and resources well they are all set to the minimum requirement often times so we need to have clear mandate that if if new data is needed then for the association of issuing bodies and and the issuing body is there it is a positive sign that the that the statistics will be published monthly that was very much wished for and uh and there should be uh quite soon um consideration of the improving the usability for example the pivot but but these recommendations are

34:38 given as something to consider not not that everything must be must be taken and for more complex upgrades which require new data collection you should weigh the benefits cost and confidentiality and combine with other upgrades and then for the european regulatory framework there should be a clear mandate aib is now the only one standardizing statistical data so uh issuing bodies would need a clear mandate of what needs to be collected and published then the geostatistics should extend to all single market single energy market and there should also be centralized data on energy production in europe through for example in soy and sog thank you

35:27 thank you very much marcus that was a good overview of the opportunities for for further development uh in a minute we will ask elizabeth sweden to react on the feasibility for issuing bodies of those recommendations or opportunities but before that we have a few minutes we can use for a poll um so if you are okay with this we can check um with all attendees um whether you have an opinion on the following question markus could you frame a little bit uh the question on the screen uh i can't see the question but um

36:14 so okay so so there's three options um and uh mainly we're looking for your input on on what would be most important new tools new data from outside the aib or price information what would be most useful for you yeah so option a is uh do you prefer new tools uh for retrieving statistical data to be facilitated um more data outside the aib being included our price information in the statistics to be included what would help you most

37:03 just looking at the amount of 52 of our audience has voted now give it uh 10 more seconds and i will close the poll in three two one um oh and then i should be yeah then you should be able to see the poll results i don't know marcus can you see them um no no i could either i can read through your life i can maybe yeah now i can see from the audience view small

37:48 yes um okay so we have quite a tight match between the price information and new tools so clearly we we are quite advanced uh users of the system which would benefit from new tools and and then this at least this audience would also benefit from price information whereas the data from outside the aib was not as critical but a good split and we didn't have another poll question on the second and the first and second improvement category so on the on the specific but that was not possible to put so uh we would welcome your input in

38:34 the question feedback on the questions uh function for those if you have important comments for those yeah uh indeed uh so that the question aimed for which improvements would you uh consider to add most value and which would you prefer uh to be prioritized um so welcome to also inform about this um in the chats are in the in the questions box and uh afterwards by email on your opinion um i see some questions are answering in the questions box that's really welcome please continue to put more questions in there in the meantime i invite first the presentation of elizabeth switton on the feasibility reflections for issuing bodies

39:23 um slides are arriving lisbetwitten is a new secretary general of the association of issuing buddies she started her job in the beginning of august this year and she took over from phil moody we also have the honor to have amongst our presenters today later in the program um and lisbeth has been uh taking over uh very well already and is very much engaged in the core of the topics of aib's work from which she now presents some reflections welcome lisbeth thank you katrine and uh yes indeed i'm i'm building on the work uh not on my own work here i'm building on on the work of aib for years and mainly of phil moody who years ago started statistics

40:11 collections of of the geos and the geo issuing trading and cancellation and this started out very small but uh given the fact that in 2019 we issue over 750 million geos were issued and this year we are already up to 600 million geos you can imagine that this is a hell of a job to collect the statistics and which is one of the things why we really welcome this this work of the within the framework of the fast go project because we are taking this uh to a next level and the work uh on on doing so is is ongoing uh next slide so uh yeah we we really support uh strongly support the fasgo project assets and and and we're also highly involved

40:58 uh in general um we are always uh very interested in feedback from all stakeholders on our statistics um we have the the habit of sending them around is circulating them uh between some critical market parties who can spot anomalies and um also in general we welcome a dialogue with the markets on on the statistics that we that we publish um we have also last month set up a new task for statistics to focus on improving the way how we gather and process and publish our statistics in a clear and timely manner because we notice how much the statistics are valued indeed and

41:44 indeed it's always good to be able to measure the impact of of what we're doing and our statistics is one one way of doing that um can we can i have a next slide so um [Music] we are as i said improving already the gathering and the the data and the structure of our our statistics earlier this year we have implemented a statistics module in the aib hub um so this is uh been implemented now and our members are now able to upload the statistics their national statistics onto our hub and that's a really big improvement already uh you can see here a screen shot on on how we we have

42:29 implemented it so far it's uh we the members still use the xml format as as also highlighted by marcus and next slide and we intend to further improve this and when this is fully implemented uh gathering will happen much more efficiently and one of the big quick wins we have already is that we will now revert to monthly publications of our statistics and you can always find these on our website under uh facts there's a tab market information and then you can have the statistics and you will see a nice collection of graphs and also the the data um so basically we are already working in this structure of the data and and how

43:15 to gather uh the the statistics uh but look into the future and next slide um we would be interested and there is a poll coming up for that after my presentation in how the attendees of this webinar would feel of of how of publishing the raw data would you be interested in in accessing this um in any case the final aim of the work on our statistics would be an automatic communication between our members and the hub so that the statistics are really gathered and published in a very efficient and quick manner so in this respect opportunity one as as highlighted by marcus on the usability of the statistics is spot on um so we

44:01 are already in the process of discuss uh the feasibility of of of this and and how we can uh implement this in the quickest uh and the swiftest way next slide however one of the main future aspects in geo statistics might be expectation management um obviously it would be a very good if we could publish everything that's available in a very visible and clear and simple manner but there um so there are like things like new data elements and categorization however there are implications to to our members to this and you must realize that there we have 29 members now from 26 countries we have two applicants and

44:46 adaptations to data elements and categorization may have um impact on their registries and on their way of working uh some of our members are subject to public procurement and cannot easily adapt things in in their registry or swiftly so adaptations shall be done and shall be proposed by aib uh probably not as a series of small adaptations but probably as one big batch of adaptations and um we will always have to consider the added value of of changes that we apply um and we will only really implement adaptations if there is an added value so that that's some kind of an expectation management i have to

45:33 give to this audience um note that some data that are wanted by by the respondents of the survey are already available um if you look on our website we have the annual report published it's on on the main page the annual report of 2019 and you can already see information there like the amount of account holders and production devices in in certain countries next slide uh so also regarding the other uh opportunities uh we will internally uh discuss and prioritize uh and uh not everything will be able to be implemented uh however we really strive for uh maximizing efficiency and and swift

46:20 reporting next slide and for that we would really uh like to keep up this stakeholder involvement and even take that to the next level uh we've always been in dialogue with our stakeholders with the market parties uh and we would uh consider setting up a group meeting one or two twice per year um in order to get a better understanding what what are the needs and wants and and how we could achieve uh progress in statistical reporting there are multiple possibilities that we see and after my presentation there will also be a pull question on on this topic next slide anyway concluding uh it's really nice to see that the work of aib in terms of

47:07 publishing the statistics is so much appreciated uh it's also very very nice that this report clearly sets out some opportunities for improvement and um we will and with making also the the difference between quick wins and long-term aspirations um we would like to extend our cooperation uh as the aib between our members the stakeholders and make sure that we can improve it uh in the best efficient possible and efficient way and as we see it's indeed missing data from the single market non-aib members is one of the gaps we are facing and also data for other energy carriers where standardization uh will be needed

47:54 in the future so thank you for uh this next slide yeah and uh catherine uh there's the poll can be launched so yeah first question um we already published uh the the statistics in graphical representation would you be interested in the publication of the raw data and uh would you be interested if this were for free or would you even be able be wanting to pay a fee and or don't you have any interest in more detailed data i see that a lot of respondents are voting and there's a clear preference for one of the options still waiting for the vote to continue

48:43 there's right about 120 attendees the moment we have about half of them voted we give it a bit of 10 10 more seconds for our vote this is clearly about also of course a funding question for aib so um very interesting to see what happens in the last five seconds four three two one okay so 61 of the voters uh is interested in gathering the raw data but only if it's for free and we see that one out of 10 of the respondents would be willing to pay a fee

49:29 and one out of three more or less is not really interested in more detailed data that's i think a clear answer thank you for this yeah just saying that 58 of our 120 participants have voted on this question let's move to the next question so indeed would you join a forum to discuss with aib uh with issuing bodies and the stakeholders uh manners and ways how to how we can improve statistical reporting and statistic gathering etc um we could do this and at our annual open markets committee which is taking place

50:14 by the way in on the 26th of november uh twice a year uh what at the omc and the rex market meeting or maybe preferably in a closed user group or are you not interested in participating in such a dialogue it would be interesting to have your opinion on this voting is ongoing we have over a third of the audience that has voted some more second left

51:14 let's give it five more seconds four three two one close okay so you can see that the responses are a bit divided uh but the the majority of the attendees would really like to have this discussion which is a good signal uh whether it's annually or twice a year or even more that's a bit uh mixed um but it's a clear signal and that's good for us to know that that there will be a dialogue that we can improve our dialogue with them with the stakeholders on our statistical uh reporting so thank you for this capturing i don't know whether you have more

52:01 i just have to say that half of the audience has answered to this poll but so it is indeed a clear signal um of course there may be some people who don't have an answer because of their um other orientation that brings us to the q and a session on the statistics and there are some questions mainly on confidentiality and also um on um of of price reporting and also on feasibility of having a correct price reporting so um i get a question maybe um [Music] well i think all three of you could answer is is there any possibility to conduct

52:48 price information to the issuing bodies with free market rules and gdpr issues uh stands still that comes from honor oui with the turkish regulatory authority uh i think you can take this question it it will be an uh as always these are uh questions that are difficult to tackle but it must be possible to find a solution on on conducting research on prices respecting gdpr as long as we have sufficient market uh players but i'm sure adam will want to complement my my answer in this sure i mean i think it is it's definitely important to have anonymized

53:35 data if price information is being shared and a number of market participants would be important as that in that in as you only have mentioned in in his question um and that's that's both on how the information is gathered and how it is presented as well so it's on both sides maybe uh catherine you could speak to how it's done in flanders because i think flans is the only regulatory why they do have price data on geos yes indeed i'll first read on um the question of aviono voruela for for being complete if price data is included on transfers how the confidentiality on contract parties are secured some domains may have only a few participants so anonymous data is easily traced so we read that as really very important signal to the markets that

54:20 needs to be their information if they provided it needs to be protected um i can indeed comment on what is being done in flanders um and that they have they are the only system i know of where the legislation says that the seller of the certificate has to report uh price information while he introduces his transaction into the certificate registry of the issuing body and the receiving party there needs to confirm the transaction before the certificates are being received so that gives also at the same time a kind of confirmation on the of the transaction end of the price so that's organized there by legislation by legislative mandate also to the issuing

55:06 body to then publish based on that aggregated price statistics um this is what the issuing body also did is filter out uh transactions intra sistered our daughter companies which were at a price of zero um and apart from that um no problems have occurred to that there has been an investigation on accuracy of reporting and so far actually in flanders never doubts have occurred on on that while that system is actually already in place since 2002 for support certificates and for the guarantees of our agencies 2006 and so the market has pretty clear um or has never um [Music]

55:52 doubted their accuracy of that system um it's possible but in practice it shows also that the legal mandate would be necessary probably to arrange for it also these parties are being audited in terms of financial accounting etc so they have no so i want to answer on another uh question on the correctness of of price data um by rimco um staying cullen fells i that basically comes comes to that they don't have much incentive of reporting false data because um of financial auditing um that needs to happen anyway but if a handshaking is installed it's an

56:38 additional assurance of the price price quality it's being reported and the question on organizing um [Music] confidentiality for registries with um very few trading parties um shall i take it or shall this peter marcus take that question um you can take it katrina as you have the the experience um with the audits of aiv yeah we um we had a few uh we have a few uh issuing bodies where there are very few participants in the in the each system so for example if a country has only three to five traders these traders are very very reluctant for the overall

57:23 aggregated figures to be published because they also feel they are then very much exposed in their individual transactions or in their individual market position um and aib has always tried to balance out those concerns so um it's definitely first up to the issuing body to see whether that is an issue in its country and um there where it has been an issue that has always been taken up inside aib as we have predicted it um and for those countries where the issuing body anyway uh feels it can be done because of the markets organization in its country their aib simply has copied the statistics that are published also in that country then there is a question on uh

58:10 an item on price reporting um i understand that regarding the ai that probably relates to the poll on the price reporting um which said that the majority of respondents is interested in more data if it were for free and i see this as a comment from remkofenstein counsel saying i understand the answer regarding aib being not for profit regarding how fees would be used however dissemination of data uh should ideally not be limited to paid subscriptions yeah that's uh that's a valid point obviously as we are uh providing services of public interest so this is absolutely a valid point to take into

58:55 account however um it is not unusual for a non-profit association to charge for uh certain activities such as publications or at a cost covering uh fee so yeah it's something that to absolutely take into account and to further uh uh investigate yeah we see that there are two sides of the coin there is of course transparent information in the market and there is the issuing bodies who need to fund their activity um in organizing this data to be collected and disposed so that balance has to be further considered then a question by axel butzon um even with a legal framework how would you come with an accurate and relevant price

59:42 information the deals are encompassing forward deal this is manageable for power thanks to remit but this framework is much too heavy for geo trading what do you think yeah i agree it is that's absolutely something that is uh that that's a very valid um remark and that's a remark we've always made regarding to reporting price information that the the reliability of this information could also always be questions however what the flemish examples shows us it's that it's at least extremely useful to have an indication of prices um but indeed we would require a legal framework and a way to uphold this and to to guarantee reliability so thank you

1:00:29 axel for this comment yeah i think it also um puts in contrast price uh statistics could only be possible for historic data um like when an when a transaction is introduced into the registry at that time a fixed price can be uh reported um it's pretty much harder to collect forward prices and contract prices for an association like the aib um not saying that they're i mean while still acknowledging the big value of uh price forecasters uh in the markets it's pretty hard for a neutral um objective organization as the aib to make forward predictions so that's probably better a role for dedicated

1:01:18 participants in the market looking at the questions i think the majority of them are answered actually all of them are answered yeah thank you very much for these questions and we have haha we are in time very well so that's very nice that gives marcus four minutes extra for his residual mix presentation with that i would like to thank you uh tree very much for your presentations in

1:02:03 the residual mix in the statistics and closer statistics slot so that we can open uh the next part which will talk about the residual mix thank you to residual mix is uh for some uh something of their daily care for some something of their just once a year care and for something they've never heard about and that's a weird magical word um so marcus um could you please enlighten us a bit on the work of fasco on that subject thank you thank you catherine could you do fools yeah so okay yeah so i can pretty much start from the beginning beginning of the millennium

1:02:50 because we have the extra four minutes right um so it is perhaps not not possible to tackle the whole topic within this time slot but i will give you an overview of what we have done with the fast go project theme on residual mix for non-electrical energy carriers so we had two high-level task tasks of work package 4.2 we needed to update the residual mix methodologies for electricity which was already presented in march this year in a webinar and there we ratified the move to an issuance-based methodology then the second task was the initial concept for residual mixes of

1:03:36 non-electrical energy carriers and this was the first known attempt to find an approach and to lay ground for future work and and since the emphasis of this project was more on the on the standardization uh the the 16325 this was merely the first first draft of what these this could look like and and this presentation we focus on point two because as mentioned we have already covered point one in march but before we go into the results of this project let me go back to the beginning of the millennium and let's have one one slide on what the residual mix is so it's it's the pool of attributes full of generation that is left from explicit tracking so explicit tracking meaning that at that certain

1:04:24 energy origin is tracked to just a specific consumer or company so we have consumers and companies who are buying specified electricity from the system with a specific source and all which is left is the residual mix so everyone who is not buying tracked electricity gets gets what's left after explicit tracking uh and this is needed as long as not each individual unit of generation is is explicitly tracked to a certain company or household or whatever whoever is the consumer and it ensures the correct balance of res attributes in the system especially rest attributes but of course other other sources as well and it triggers the scarcity of renewables

1:05:10 through geos because it takes them out from the others and it's pretty much you could consider residual mix as the price you have to pay for having a geo system you can't have your cake and eat it as as one aib official used to say so you need to take the the geos out of the out of the residual mix and from a larger perspective uh reliable disclosure is pretty much what abel's consume which enables consumers participation in steering the transition with their choices so this is we need to make this reliable and now we want to do this for the other energy carriers as well first we need to set up some general principles on on what is needed for a

1:05:57 reliable residual mix calculation first principle is that we need to have a disclosure system if we don't have a disclosure system we're calculating a residual mix just for the sake of having a residual mix if if these consumers here get green electricity with geos green energy with geos then then if we don't have disclosure required then there's no mandate there's no requirement to use the residual mix and hence it will likely not be in much much use so we need to have every single customer consumer disclosed with the energy origin second all

1:06:42 especially renewable tracking should be monitored if if we don't monitor everything then uh we don't know how much of this renewable part i hoping you you can see my my mouse on the screen but uh um we don't know how much of this renewable part is tracked to people it might be tracked to someone else but we just don't have transparency over it and therefore we cannot deduct it from the residual mix so we cannot have a reliable residual mix without transparent tracking third that we need to have the same parameter for consumption and production with geos and residual mix calculation and this means that if if we can issue geos for a certain production which is

1:07:29 outside of the production for which we calculate the residual mix we are leaking in attributes into the system so the basis from which geos are issued needs to be the same basis from which the residual mix is calculated for example with regards to off-grid and grid gas or on-site on-site consumption fourth with regards to energy carrier conversions uh we have established that issuing of geos for the output energy carrier can only be based on a cancellation of the input energy carrier so we can't have uh issuing of geos for based on residual mix we need to know ex exactly what the

1:08:14 energy is that is feeding into our process when we have energy carrier conversion because this second option wouldn't would allow sort of uh cherry picking and and residual mix is not a tracking instrument and and it's comparable to the fact that you cannot even in the electricity side you cannot take attributes from the residual mix and used for your benefit so this is the starting point of our work and clearly an interim solution is needed for the other energy carriers because the disclosure framework is not sufficient there's no requirement for origin disclosure of gas nor hydrogen at the european level uh and for instituting cooling there's a loose requirement for the rest share to

1:09:01 be disclosed but certainly uh with electricity it's clear that geos are the sole mechanism to make green claims but this exclusive exclusivity of geos for for greenness is not clear for the other energy carriers so we don't have a certain preconditions fulfilled the primary aim of residual mix is not being the residual mix it's to avoid double counting of geo attributes so attributes with someone has paid for regardless of the disclosure infrastructure in in which the geos exists and therefore we need an interim solution which guarantees that that there is no double counting with with renewable attributes with regards

1:09:48 to geos and since we cannot guarantee that all tracked res would be removed from the residual mix and because we don't have well before we have a sufficient disclosure framework and reliable transparent tracking of res we recommend a fossil only residual mix as an entering solution and what this means for the different energy carriers for hydrocarbon gas we recommend that the residual mix would consist of natural gas as it pretty much dominates the grid anyway uh and that it would allow each if the residual mix was but was by default natural gas it would not lead to double counting of biogas geos biomethane geos and

1:10:34 the second point is that most gas is physically imported to europe anyway so the pool of attributes would be pretty similar across countries which would perhaps also reduce the motivation to calculate for a sophisticated calculation for hydrogen um we recommend that the residual mix is hydrogen for natural gas so that's because almost all production in europe is from natural gas and we can also assume that most renewable hydrogen will be issued a guarantee of origin so it will be taken out from the residual mix of course we need to we need to be ready for for any situation but this would give give us the preparedness for for that not everything would be issued either

1:11:19 so in with regards to district heating we recommend that the residual mix is the average fossil generation mix of that grid and it's important that without renewable geos you can only disclose fossil energy origin you cannot you cannot have a certain share of res without a geo and the transferability of geos across heating grids so if you can transfer from one heating grid to another defines the future for the residual mix calculation for district heating we assume that the interest is a lot even lower than for heating and gas and hydrogen but we recommend that the residual mix would revert to a safe value within that grid but we we don't assume much demand for

1:12:05 district cooling uh for a separate heating and cooling system we we assume that those are out of the scope for geos because they are they are small unit sizes and and the energy is produced and consumed only locally but we do want to think about the situation when disclosure is up to speed so so when we have to do two preconditions met we have a disclosure system implemented and tracking is reliable and monitored so what to do then for hydrocarbon gas we have the first of all we have the situation option where residual mixes natural gas which is the simplest and most robust against the double counting we can

1:12:51 expand on that a little bit by adding the expired geos in proportion to their share with the with the total residual mix and that would allow us to comply with the rest too a bit better because it requires this and it would also add value to the consumer in terms of accuracy but but both of these options are are doable even in the current disclosure framework now when disclosure is implemented and reliable we have basically two options so we have the electricity model where we do a proper country level residual mix which is balanced with the european attribute mix to to cover for attribute imbalances or then we have a separate residual mix calculation for grid and off-grid gas

1:13:38 and balance them out either on a separate european attribute mix or in the common european attribute mix and uh of course the choice of the geo system the perimeter of the geo system defines the way between three and four and since we assume a common geo system for off-grid and grid gas we assume that option three is the way to go and we also say that if certain geographic origin of for example natural gas is important for the consumer that should primarily be tracked with the geo because the geo is what proves the attributes of the of the production uh and we should not mix it by default with the residual mix calculation geographic origin because because it adds so many levels of complexity into

1:14:26 the calculation in order to be done reliably then next topic is the interplay of hydrocarbon and hydrogen disclosure systems so hydrogen is expected to be injected in the into the natural gas network in increasing quantities and we need to we need to know what's the level of separation between hydrogen and hydrocarbon gas disclosure systems so here we have hydrogen which is produced and which might be injected into the gas grid along with hydrocarbon gases and how to deal with this interface between two different energy carriers is either to

1:15:11 have a common disclosure system for hydrocarbon gas and hydrogen which means that you can use for example hydrogen geo to green gas consumption from a grid even if that hydrogen is never injected in the grid so it's complete cross usability and vice versa you can use a biomethane geo to green hydrogen from outside the hydrogen consumption that takes place outside the grid it's of course least barriers but it's sort of hard to explain because it's not physically possible it also weakens the credibility so our opinion is option our favorite goes towards option two because we don't have a common regulatory framework for hydrogen and hydrocarbon gases so

1:15:59 uh hydrogen injected into the natural gas grid would be tagged saying that it can be used for disclosure of of gas taken out of the natural gas grid uh because it's physically most logical and acknowledges the difference of the energy carriers but of course would require separate geo systems with with separate conversion and blending rules great finally for heating and cooling we have the interim solutions on the top uh with with our uh well basically the option one would be the rest share only option where uh where each grid would only disclose the

1:16:46 renewable share and large part of disclosure being unknown because this is what is required by the red two then we can also consider the residual mix of each grid as as the fossil generation mix of that grid so uh so that would also allow for avoidance of double counting of geos in the third option where we would calculate a specific grid internal residual mix uh we would need to restrict the transferability of geos across grids because because if we if we transfer geos across grids then we need to balance the attribute imbalance and if disclosure is not reliable this cannot be a reliable option so

1:17:31 so um it the the parameter of the geosystem defines the way forward for the interim solution as well but when we have a disclosure system implemented and tracking of renewables is reliable uh we have laid out again some options firstly the electricity model where each country is is calculated as a common pool of attributes balanced with the am the downside is that we don't have a grid specific residual mix and for example if a specific grid in a country is is very much different from another grid in terms of energy origin this knot might not be very accurate the second is that each grid is considered as their own domain and

1:18:17 balanced directly with the european attribute mix if you take it into the electricity concept it would mean that each grid would be its own domain and the final and most complicated option is that where we first balance each grid with each country and then we balance the attribute imbalance with the european attribute mix this adds an extra layer but in terms of calculation these effort these three options are not sizably different so the complexity complexity would not increase the work because the same

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