1 Association of Issuing Bodies Phil Moody (Secretary General) Ankara – 28 April 2006 The activities of the AIB

2 AIB services l Certification fundamentals l The need for standards l The EECS standard l EECS Certificate Activity l AIB Activities

3 Certification Fundamentals

4 Energy Certificate Systems Certificate system Supply Demand Issuing Body Transfer Electricity market Certificate market Redemption Computer System Issuing Physical flow Contractual flow

5 Energy Certificate Systems Certificate system Supply Demand Issuing Body Transfer Electricity market Certificate market Redemption Computer System Issuing Physical flow Contractual flow

6 The Need for Standards

7 Why have a standard for certification? Accounts Issue Redemption Supplier/ government Audit Ongoing proof Accredit Initial proof Certificate market Transfer Other Issuing Bodies Trade Accurate transfer Standards Issue Commodity design Redeem Prevention of double- counting

8 Why have a standard for certification? Issue Redemption Supplier/ government National Market Transfer International Markets Challenges Increasing volumes New certificate types New countries joining Diesel Withdrawal from market Recording certificate use Redeem Was it double- counted? Standards Certificate format Standard calculations Issue What is being burned? Is it a windy day? Inspection criteria Standard measurement Accredit Really renewable? Can you prove it? Audit frequencies Codes of practice Audit Did they prove it? Has it changed? Inter-registry protocols Standard account numbers Connections to exchanges Trade Who got it? Did they want it?

9 Request for certificatesIssuing AUDIT APPROVAL Meter readings Issuing Body Application for Registration Capacity Energy sources EECS scheme Account Location Meters Commissioning date etc… Certificate

10 The EECS Standard

11 AIB Market Structure National Trading arrangements Voluntary regulations or Legislation Service Provision Agreement Service Provision Agreement Sub- contractor Inter-IB Agreement Standard Contract of Sale International Rules (the “PRO”) National implementation (Domain Protocol) Market Parties Issuing Body (member) Liability

12 Regulation The “Pro” (Principles & Rules of Operation) Subsidiary Documents Chapters Fact Sheets Domain Scheme Domain Scheme Domain Scheme

13 Regulation Principles & Rules of Operation Subsidiary Documents Assessment Registries Use of Agents Change Codes Reviews Chapters 1.RE Guarantees of Origin 2.RECS 3.Disclosure 4.CHP Guarantees of Origin Fact Sheets Types of Public Support Member Codes Scheme members oGO oRECS oDisclosure oCHP Energy Sources / Techs Addresses Domain Protocol guidelines Reviewers Domain Scheme

14 What is in the PRO? 1.Core principles 2.Definitions 3.EECS Schemes 4.Admission & Expulsion 5.Harmonisation Measures 6.Processing of Certificates 7.Probity of Members 8.Member’s Agents 9.Compliance 10.Disputes 11.Assessment Panels 12.Change procedures 13.General 14.Chapters (per scheme)

15 PRO - Core Principles The Ten Commandments The Ten Commandments 1. Uniqueness - a certificate is unique 2. Ownership - account holders own certificates 3. Operational reliability 4. Protection of Account Holders 5. Governance 6. Access & Transparency 7. Cost Effectiveness 8. Communications 9. Regulation & Oversight 10. Records

16 EECS Activity

17 Summary of Activity Since Issued120,729,01447,934,206 Exported33,200,27513,690,440 Redeemed59,522,70124,753,055 (source AIB statistics report: 5 March 2006)

18 Certificates issued

19 Certificates transferred

20 Technology blend over time

21 AIB Activity

22 AIB Activities l Quarterly general meetings  Decision making forum  Opportunity to share views; see how different IBs operate  Shared with RECS International  Opportunity for formal and informal exchange of views l Monthly Board meetings  Strategic development  Operational control l Ad hoc workgroup meetings  Development of the EECS system  Enhancement and error correction  Some biennial, others monthly or even less  Good informal relationship

23 Questions & Discussion 12 Broadway, Amersham, HP7 0HP, United Kingdom Tel: / Fax: