INTERVIEW: QuiEstVert says more French use of its GOs would boost renewables growth

If the French government required more guarantees of origin to be used domestically rather than exported, this would increase the spread of renewable energy in France, says the head of QuiEstVert, a non-profit organization promoting voluntary consumption of renewable power in the country.

"GOs help finance renewable energy in an efficient and sustainable way thanks to voluntary demand from consumers," Ivan Debay said in an interview with S&P Global Platts.   

GOs are used to ensure the origin of the electricity consumed comes from a renewable source.

QuiEstVert is trying to increase understanding and to bring transparency to the French GO market. There are only two other organizations doing something similar: RECs International on an EU level and ECS Schweiz in Switzerland.  

Although QuiEstVert has had a great impact, it could do much more, Debay said: "I invite companies to join us as QuiEstVert members, and together we're going to make good things happen in France."

QuiEstVert is working to establish the necessary regulatory framework in France to achieve a high level of voluntary consumption of renewable power in the country. In its words, it promotes putting electricity at the center of environmental issues. 

France has one of the lowest rates of consumption of renewable electricity in Europe, at only 12.9% in 2020. This is reflected in the slow growth of the French GO market compared with neighboring countries. If France continues to export much of its GOs, meaning it is exporting much of its renewable energy, instead of using them domestically, the transition to green energy will be slower. 

QuiEstVert's aim is to keep more of the GOs generated in France within the domestic market, meaning the consumption of renewable energy in the country will grow. France has one of the lowest rates of consumption of renewable electricity in Europe, at only 12.9% in 2020.

'Peer pressure' for renewables

"The end of the electricity tariffs for companies in January 2016 forced consumers to make a choice," Debay said. "From the moment firms were given the possibility to pick a "liberal contract" without the tariffs, they had to make a choice: renewable or not renewable [energy]. Before that, they had to stick to a regulated tariff and had no choice.

"Another incentive to commit to energy transition was COP21," Debay said, referring to the UN climate conference in Paris in 2015. The "peer pressure" for renewable energy, as he called it, sharply increased since COP21, with stak

eholders – customers, suppliers, public authorities and NGOs – increasingly in favor of energy transition and incentives for more green electricity consumption.

While demand keeps soaring, there are still too many "unused GOs" for the whole GO market to function properly, Debay said.

Cancelling a guarantee of origin is the only way to redeem its benefits, since the cancellation ensures that the certificate won't be traded or consumed by other users. Cancellation's main goal is the avoidance of "double counting," where two parties claim the same carbon removal or emissions reduction, meaning one has not actually accomplished this aim.

"The volume of cancelled GOs is growing steadily," Debay said. "Yet, we need more. Much more! Over 100 TWh of renewable energy source of electricity are produced in France annually and only 50 TWh of RES GOs have been cancelled in 2020. French GOs are flooding the European market and thus blocking investment signals all over Europe."

Indeed, as seen with other countries like Norway, countries like France normally prefer to export their GOs due to higher prices elsewhere.

"QuiEstVert wants to make France the biggest market of GOs in Europe and hopes that more than 100 TWh of GOs will be used in 2022," Debay said. "We have succeeded in giving enough in-depth information to explain what a GO is and why supporting the development of renewable energies is important." 

But the importance of using GOs remains unknown to most people and "the word needs to be spread," he added.

QuiEstVert collaborates with companies that would like to develop to GO French market. The current partners --  Commerg, Ekwateur, Energie d'Ici, Green Access, Mint Energy, Nvalue, Origo and Planète Oui -- include both GO market participants and renewable power producers, with the aim of having both consumers and producers perspective.

Knocks carbon accounting methodology

Debay underlined that "big companies are helping by committing to use renewable electricity. This means using GOs. It's very simple," he said.

The French GOs market hasn't come with a smooth transition and there have many obstacles, especially from regressive regulations, hindering its expansion, Debay said.

"There is an urgent need for progress in the law," he said. "First, we need the full disclosure at the production level as soon as possible so that we stop the huge double counting of nuclear energy in the residual mix.

"Secondly, the regulation concerning public support should evolve so that power producers can offer green offers such as power purchase agreements, including GOs of course," Debay added. A PPA is an agreement between a power producer and a customer and are normally used to reduce market price risks.

Third, "the methodology of carbon accounting provided by the French State Agency for Ecological Transition, or Ademe, should change," said Debay, adding this methodology should be more user-friendly to encourage companies to act. "This methodology needs to consider GOs as a tool to reduce carbon emissions and in line with the Greenhouse Gas Protocol. The protocol provides standards, guidance, tools and training for business and government to measure and manage climate-warming emissions."