AIB, the European company responsible for an energy certification system for power companies in the region, has suspended the sale of green energy credits from Iceland. According to a press release from the company, there are indications that a “double claiming of energy attributes was taking place.” The certificates are bought by foreign companies and are a huge source of income for Icelandic energy producers. RÚV reported first.
Last January, Iceland Review reported on the local impact of the energy credit market, which is intended to encourage investment in the production of green energy. While over 99% of energy produced in Iceland comes from renewable sources like hydroelectric and geothermal power, a majority of energy produced in Europe is still nuclear or fossil fuel. Some 90% of energy produced in Iceland is now sold on renewable energy credit markets, meaning consumers of non-renewable energy can purchase green energy credits even if their operations are powered by, for example, coal.
Sale of energy certificates could reach ISK 20 billion per year
AIB suspended the sales due to a suspicion of double counting: that some companies were claiming they had purchased green energy credits from Iceland that had already been sold to another party. AIB pointed to a lack of oversight on the sale of the certificates from Iceland, and that it needs to be better clarified who is responsible for the oversight.
AIB stated that they intend to help Landsnet (the public company responsible for Iceland’s power transmission system) resolve the issue, “thereby securing Icelandic national interests.” The sale of such certificates nearly reached ISK 1 billion [$7.4 million, €6.7 million] in 2019. The National Power Company of Iceland (Landsvirkjun) estimates that sales could reach ISK 20 billion [$147 million, €133 million] annually.