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  • Location: GELDERLAND 
  • Founded: 2001-07-23
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    GO 2016 Annual Report Conscious Devic try e ope HYDR Coun Quantity: O Prod of origin: Wh uctio np city: 1M Nethe Capa eriod: 10 lands r -2016 ration 5 MW al: si nce 0 4-200 5 GO E OR N SH Wh ly O 1 M : Ita 16 ND : n 0 WI antity origi 06-2 u f d : 07 Q ry t o e rio MW 08-20 un p 3 e Co ction city: : sinc d u p a a l Pro Ca ation e r p eo e vic D

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    1 Preface Conscious. Consumers are increasingly making conscious decisions when All these developments underline the fact that it is impossible to imagine it comes to energy consumption. They want to know how their energy the market for sustainable energy without the Guarantee of Origin. This has been produced and what the impact is on their living environment. is not only the case for the Netherlands, but the draft Directive that was The demand for green electricity continues to rise sharply. In 2016, published by the European Commission in December builds further on 48 TWh of electricity consumption was green, over 5 TWh more than transparency by means of Guarantees of Origin. The Directive takes an the year before. Thanks to the Guarantee of Origin, increasingly more important step, namely that in the future the sustainable share in the consumers – from households to industry – are assured that their energy label1 must be based on the Guarantee of Origin. Suppliers will electricity is supplied from sources that they value. Consumers are then only be able to demonstrate that they have supplied sustainable seeing more and more that they can make the difference by asking energy with Guarantees of Origin, and consumers will then be assured their supplier for electricity from a specific source. that the claims they make about their energy consumption and the effect on our living environment are justified. There is, for example, an increasing demand for Guarantees of Origin for wind energy. In 2016, Guarantees of Origin were cancelled for In the Netherlands we are also building further on transparency. At 7.5 TWh of electricity derived from wind in the Netherlands; 10.9 TWh the request of the House of Representatives, the Minister has indicated was imported from Denmark and Italy alone. In total, Dutch consumption a desire for, with the exception of the trade mix, all electricity supply of wind certificates increased in 2016 to 21.5 TWh, a growth of more to be based on Guarantees of Origin, so not just sustainable electricity. than 70% compared to 2015. In this way, the consumers of fossil electricity and nuclear electricity will also have more insight into the source of their energy. No longer The supply of Dutch Guarantees of Origin also increased. That is an on the basis of assumptions and means, but on the basis of individual indication for domestic production. In 2016, the total capacity of wind conscious decisions. End-users make the difference with their own turbines registered with CertiQ exceeded 4,000 MW for the first time. choices and take responsibility for them. Consciously. The share of solar also continues to increase. There are now almost three times as many Guarantees of Origin issued for solar than for hydro energy in the Netherlands. In the Netherlands a total of 14.4 TWh of sustainable C.C. Krijger J. van der Lee B.G.M. Voorhorst electricity was certified, an increase of 10% compared to 2015 (13.1 TWh). Manager CertiQ B.V. Manager CertiQ B.V. Chief Operating Officer An important stimulant comes from large business end-users who, by after 1/4/17 until 1/4/17 TenneT TSO B.V. including Guarantees of Origin in Power Purchase Agreements (hereafter PPA), can give the energy companies that little extra return to realise new investments in sustainable energy. In this way, with conscious consumers, 1 The energy label allows suppliers to show the energy they have supplied and which the Guarantee of Origin contributes to a sustainable energy supply. sources they have used. 2 CertiQ 2016 Annual Report

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    CertiQ B.V. 2016 Annual Report 1 Preface 2 In this translation an attempt has been made to be as literal as possible without 2 Developments 5 jeopardizing the overall continuity. 2.1 Full Disclosure 5 In the event of discrepancies or ambiguity 2.2 Market developments 5 between the original Dutch version of 2.3 International 5 the 2016 Annual Report of CertiQ BV and this English translation, the Dutch 3 Results for 2016 6 text shall prevail. 3.1 Production 6 3.2 Consumption 8 3.3 Import, export and stock of certificates 10 3.4 Certification of fossil electricity 10 3.5 Operational affairs 11 3.6 Financial result 11 4 Corporate Governance 13 5 Financial statements for 2016 15 Appendix CertiQ works together with... 32 Contact details and publication details 34 (clickable table of content) 3 CertiQ 2016 Annual Report

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    GO GO O E O M M ANUR S FR BIOGA ntity: 1 MWh ands Qua therl Lan G OA Ho C o u n t rig i n : ry of o eriod: 05-20 N e 16 eve FVA ction p d Pro van h elhe L Produ pacity: 1 MW 03-2009 Lan Hoeve WATER Ins Ins duct erko id: 1M Ca i o n al: sin ce dv elh ope r a t Pro an her eid: 1M tall tall ie m du kom atie atie perio st: N Wh Device W op verm de: ede Inst Instal ctieper st: Ne h era r alla tie oROatieW l v hr d io e : derl tio ogen 06-20 land e y 1 0-20 and nee 1 GvO a : H Y D perM m 1 a No g0e1n6:r w o 16 l: s 60 M 6 t i ty: int:io nee-2 5 M ind s1 W an ig 10 l: s 1W Qu of or riod: MW in-d 9 s 2 1 04- 2-1 998 n try n pe ,400 ce 01 200 5 o u t i o : 1 i n C duc i t y l : s c a Pro Capa ation per D e vic e o GO H ORE N S I N D O : 1 MWh aly W t u a ntity rigin: I 2016 Q o - n t r y of riod: 06 Guarantees of Origin show how energy is Cou tion pe 3 MW 7 : 0 8 - 200 duc ity ce generated, by which production installation Pro Capac al: sin e r a tion and which energy source is used. v i c e op By making this information transparent, R De SOLA MWh users become aware of the impact of their tity: 1 pain energy consumption. Quan f origin: S 2016 try o eriod: 09- P C r o o u d n u c tion p : 10 kW c i t y e 0 7 - 2 010 I C ITY GO Capa nal: sinc TR i o LEC MWh lands c e o perat E SIL y: 1 her D evi FOS uantit in: Net 9-2016 Q f o rig iod: 0 n t ry o on per 75 MW ce 01- Cou oducti acity: al: sin Pr Cap ration pe ce o

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    2 Developments 2.1 Full Disclosure 2.3 International The energy label plays an important role in informing the consumer On request of the European Commission, the Association of Issuing about the source of electricity. Until now only the green part of the energy Bodies (AIB) wrote in 2015, with a contribution from CertiQ, label has been supported by Guarantees of Origin. At the request of a ‘reflection paper’ in which proposals were made to strengthen the House of Representatives, the Minister commissioned research the Guarantees of Origin system. The key matters in the dialogue into the use of Guarantees of Origin for all electricity supplied, so that between policymakers and market parties in Europe are: both green and grey electricity is completely traceable to a source. - the accountability for the emission of greenhouse gases The Minister has indicated that Guarantees of Origin must be used with the aid of Guarantees of Origin; and for each deviation of the energy label from the trade mix. - ‘Full Disclosure’ (i.e.: certification of all electricity generated, combined with a full substantiation of the energy label by means The Guarantees of Origin help the conscious consumer should he, of cancelled Guarantees of Origin). for example, purchase electricity through a PPA, by providing assurance on the source of the energy consumed. At the end of 2016, the European Commission published a set of proposed measures, the so-called ‘Clean Energy Package’, which should 2.2 Market developments provide the European Union the power to continue to be competitive during the transition to a sustainable energy supply. This set of measures End-user accounts contains, amongst others, several proposals for changes to the system 2016 saw a strong growth in the cancellation of Guarantees of Origin on for Guarantees of Origin. In the course of 2017, Europe will prepare behalf of large business. This can be seen in the number of cancellations detailed proposals for the sustainable energy market and the contribution that was realised on behalf of business end-users in 2016. The increase to it of Guarantees of Origin. in the number of end-user accounts registered by CertiQ is inherent to these cancellations. An increasing number of organisations are making AIB is of great value in this, because the sustainable energy market is a conscious choice for green energy and want to be transparent about an international market, and therefore benefits from uniform and reliable its origin. In addition, Guarantees of Origin are being used to show information for its end users. In 2016, Spain and Germany became their CO2 footprint. The expectation is that this increase will continue members of the association, as a result of which the number of members in 2017. increased to twenty three. 5 CertiQ 2016 Annual Report

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    3 Results for 2016 3.1 Production Table 1: Participants in the system for Guarantees of Origin 31-12-2016 31-12-2015 At the end of 2016, a total of 13,935 production plants for sustainable Number Capacity (GW) Number Capacity (GW) electricity were registered with CertiQ, an increase of 10.2% compared to 2015. The registered capacity showed a decrease, but this is caused Electricity production 13,935 8.8 12,642 9.6 plants by the deregistration of two large installations which had not co-fired any biomass for some years. Biomass 246 4.2 245 5.5 Hydro-electric 16 0.01 14 0.0 We also saw an increase in sustainable heat: at the end of 2016 a total Solar 12,532 0.4 11,278 0.2 of 238 production plants for sustainable heat had been registered; Wind 1,141 4.2 1,105 3.9 in 2015 this total amounted to 198: an increase of more than 20%. Heat production plants 238 1.7 198 1.5 Table 1 provides an overview of the number of participants in our E-certification system. Biomass 219 1.5 183 1.3 Geothermal 12 0.2 11 0.2 Solar thermal 7 0.02 4 0.0 Traders 106 n.v.t. 93 n.v.t. 1 ) The registered capacity for hydro-electric energy amounts to approximately 37 MW. 2 ) The registered capacity for solar thermal energy amounts to approximately 3 MW. 6 CertiQ 2016 Annual Report

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    In 2016, CertiQ issued Guarantees of Origin for a total of 14.4 TWh of Table 2: Guarantees of Origin issued in 2015 and 2016 sustainable electricity generated in the Netherlands. These certificates per Terawatt-hour (TWh) relate predominantly to generation in 2016, with a smaller contribution Guarantees of Origin (TWh) issued in 2016 2015 from generation in previous years. In 2016, the issuance of Guarantees Electricity of Origin for sustainable electricity increased by approximately 10.4% Biomass 5.6 5.5 compared to 2015, which can mainly be attributed to wind energy. Hydro-electric 0.1 0.1 Solar 0.3 0.1 CertiQ issued Guarantees of Origin for a total of 3.3 TWh for heat; Wind 8.4 7.4 a small decline compared to 2015. However, in 2015 the issuance Total 14.4 13.1 of Guarantees of Origin for heat was disproportionally large because of a non-recurring catching-up effect arising from changed legislation. Heat Biomass 2.5 2.6 Table 2 sets out the apportionment of the various energy sources. Geothermal 0.8 0.8 Solar thermal 0.0 0,0 Total 3.3 3.4 7 CertiQ 2016 Annual Report

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    3.2 Consumption Figure1: Cancelled Guarantees of Origin by country of origin 2016 2015 The total number of cancellations increased from 42.6 TWh in 2015 2,4% Belgium 7,1 % Denmark to 48.0 TWh in 2016. This is an increase of 12.5%. 10,4% Denmark 2,3 % Germany 0,3% Germany 3,5 % Finland The import of Guarantees of Origin is necessary because the quantity 0,6% Estonia 12,8 % France 5,2% Finland 4,5 % Iceland of green electricity consumed in the Netherlands is much larger than 8,2% France 0,9 % Italy the quantity of green electricity generated in the Netherlands. Figure 1 3,3% Iceland 30,5 % Netherlands shows the percentage of the cancelled Guarantees of Origin by country 15,6% Italy 27,8 % Norway 0,0% Croatia 2,7 % Austria of origin. We note that in 2016 Guarantees of Origin from Denmark 23,1% Netherlands 0,6 % Slovenia and Italy were used more often. 19,8% Norway 7,3 % Sweden 2,6% Austria 0,7% Slovenia Figure 2 shows the cancelled Guarantees of Origin by energy source. 0,3% Spain This figure shows that the consumer has a growing preference for 7,5% Sweden electricity generated with wind. In 2016, the share of wind increased from 29.1% in 2015 to 44.7% in 2016. Figure 2: Cancelled Guarantees of Origin by energy source 2016 2015 11,2% Biomass 15,0 % Biomass 2,3% Geothermal 0,8 % Geothermal 39,9% Hydro-electric 53,4 % Hydro-electric 1,9% Solar 1,6 % Solar 44,7% Wind 29,2 % Wind 8 CertiQ 2016 Annual Report

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    In table 3 below the cancelled Guarantees of Origin by energy source End-user accounts are shown in round GWh. When cancelling a Guarantee of Origin a trader states whether this is done in the capacity of energy supplier for a product the trader Table 3: Cancelled Guarantees of Origin in GWh, offers to customers with a contract for sustainable energy, or because by energy source the trader is greening the energy for a corporate consumer, or ‘end user’. 2016 2015 Table 4 shows how many Guarantees of Origin were cancelled in the past Biomass 5,379 6,416 two years for products and end users, in relation to the number of end Geothermal 1,089 325 users. This comparison shows that in addition to a significant increase Hydro-electric 19,168 22,761 in the number of cancellations in support of products which are delivered Solar 940 666 to customers, the corporate market is also still growing strongly. In 2016, Wind 21,454 12,436 the number of end-user accounts increased by 190, and the total of Total 48,030 42,604 cancelled Guarantees of Origin for end users increased by more than 20%. This shows that green energy is a conscious choice which an increasing number of organisations is making. Tabel 4: Cancelled Guarantees of Origin and end users 2016 2015 Number of end user accounts 517 327 Number of cancelled Guarantees of Origin (in GWh) for: End users 12,030 9,984 Products 36,000 32,620 Total 48,030 42,604 9 CertiQ 2016 Annual Report

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    3.3 Import, export and stock of certificates 3.4 Certification of fossil electricity In the year under review, the import of sustainable electricity increased For a number of years, CertiQ has issued certificates on request for by 3.2 TWh to a total of 37.5 TWh. In 2016, the export declined further electricity generated from fossil sources (natural gas and coal). Table 6 to 3.1 TWh. Table 5 provides an overview of all the movements in provides an overview of all movements in the stock of certificates for the stock of certificates for sustainable electricity. non-sustainable electricity. Although export showed a slight increase in 2016 compared to the previous year, the issuance of new certificates Table 5: Movements in the stock of Certificates for has decreased for the first time in several years. sustainable electricity in TWh 2016 2015 Table 6: Movements in the stock of Certificates for non-sustainable electricity in GWh. Issuance 14.4 13.1 2016 2015 Import 37.5 34.3 Increase in stock of certificates 51.9 47.4 Issuance 600.5 1,545.6 Import 0.0 40.0 Domestic transfers 7.5 7.9 Increase in stock of certificates 600.5 1.585.6 Cancelled 48.0 42.6 Domestic transfers - - Certificates issued for own use 1.1 0.8 Export 3.1 3.5 Cancelled - - Expired 0.5 1.4 Certificates issued for own use 25.1 69.7 Decrease in stock of certificates 52.7 48.3 Export 868.1 763.0 Expired 68.7 53.0 Stock as at 1 January 12.2 13.1 Decrease in stock of certificates 961.9 885.7 Movements in stock of certificates -0.8 - 0.9 Stock as at 31 December 11.4 12.2 Stock as at 1 January 467.8 53.0 Movements in stock of certificates -361.4 414.8 Stock as at 31 December 106.4 467.8 10 CertiQ 2016 Annual Report

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    3.5 Operational affairs 3.6 Financial result Our customer satisfaction has improved significantly over recent The financial income and expenditure for 2016 (× EUR 1,000) can be years. CertiQ scored a 7.3 in its customer satisfaction survey in 2016 summarised as follows: compared to 6.6 in 2014. We are, of course, proud that our performance improvements are bearing fruit. Therefore we are working with extra Table 7: Financial result motivation on the realisation of further improvements. The next survey 2016 2015 will be conducted in 2018. Revenues 2,235 2,142 We are continuously looking for collaboration opportunities in the chain Other income 210 240 (for example with grid operators and metering companies) in order to 2,445 2,382 ensure that we not only work efficiently, but also deliver a product which Operating costs 2,445 2,381 meets the needs of our customers and stakeholders, such as producers, Operating result - 1 traders and the Ministry of Economic Affairs. Financial income and expenses - -1 Result - - Simplifications that have been implemented in the year under review, include digital invoicing and a more streamlined re-registration of small installations. In addition to the efficiency gain, this has also led to a decrease in the administrative burden for our customers in the entire chain (in particular private producers, grid operators, etc.). myCertiQ improvements In 2016, various changes were made to our myCertiQ application. In addition to extra functionality aimed at our end-user customers, the focus was also placed on strengthening the sustainability of myCertiQ for the future. 11 CertiQ 2016 Annual Report

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    With effect from 2015, CertiQ started operating under mandate of CertiQ works on a cost-recovery basis. Any difference between the Minister of Economic Affairs. This means that, amongst others, CertiQ’s invoiced revenues and operating costs is cleared by adjusting the Minister sets the tariffs based on a tariff proposal by TenneT TSO B.V./ tariffs in later years, which is recognised in the financial statements CertiQ. CertiQ makes the tariff proposal on the basis of multiple-year in the balance sheet under the item ‘prepayments received’. budgeting and requests the advice of the Participants’ Council. For more detailed notes to the financial results, please refer to The following tariffs per MWh were applied in 2016: the financial statements included in Chapter 5, notes 6 and 7. - Issuance of wind/hydro-electric/solar € 0.021 (€ 0.018 in 2015) - Issuance of biomass/heat € 0.048 (€ 0.041 in 2015) - Cancellation € 0.021 (€ 0.018 in 2015) - Import € 0.021 (€ 0.018 in 2015) - Transfer € 0.008 (€ 0.008 in 2015) - Export € 0.008 (€ 0.008 in 2015) The annual contribution of EUR 25 per plant was suspended for all producers. The annual membership fee for traders amounts to EUR 500. Compared to 2015, the operating costs increased by EUR 64 thousand, predominantly caused by higher process automation costs in 2016. Because of the transfer of two application managers to the IMC (Information Management Corporate) department of TenneT TSO B.V., a movement in costs occurred from “wages and salaries” to “other operating costs”. 12 CertiQ 2016 Annual Report

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    4 Corporate Governance Compliance with the Corporate Governance Code is not mandatory Financial reporting for CertiQ. However, the principles and best-practice provisions from CertiQ’s management is of the opinion that the financial statements the code are taken into account and serve as a guideline for running for 2016 do not contain any errors of material significance. Management the business. In 2017 CertiQ intends to implement, where possible, in believes, to the best of its knowledge and conviction, that there are no its business the revised Corporate Governance Code, where applicable. further indications that CertiQ’s internal risk management and control The revised code was published on 8 December 2016. systems have not operated adequately with respect to the financial reporting risks in the year under review. Management CertiQ’s management is responsible for the strategic and organisational External accountant policies and for issuing and registering energy certificates, for which it The external auditor of CertiQ, Ernst & Young Accountants LLP, has renders accountability to TenneT TSO B.V. (hereinafter: TenneT). TenneT been charged with the audit of the financial statements and reports sets the framework for policymaking for the internal risk management to CertiQ’s management and shareholder. The external auditor issues and control systems. Within this framework, CertiQ’s management the auditor’s opinion for the financial statements. is responsible for the management of these systems. CertiQ prepares an annual plan, including its operational budget, its investment budget For more information on TenneT’s Corporate Governance Code, please and its funding needs. This annual plan is approved by the shareholder refer to the chapter Corporate Governance in the Annual Report for 2016 and serves as a mandate for management. CertiQ reports to the share- of TenneT Holding B.V. holder on the execution of its annual plan at least every quarter. The financial results and operational developments are reported periodically. 13 CertiQ 2016 Annual Report

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    GO GO GvO GO WATER Hoeveelheid: 1MWh GvO WATER Hoeveelheid: 1M Wh Land van herkomst: Noorwegen Productieperiode: 10-2016 Land van herk Productieperi omst: Nederla Installatievermogen: 1.400 MW nd Gv La Hoe O Gv ode: 10-201 Installatie I C I T Y Installatie 6 operationeel: nd ve Zsinds e ON 01-1921 C T R ve rm og en : P r v a l h InstallaEtie LEop h ne ds 5 MW Ins od n h eid SIL er Wio Mat ta5l Insta uctie erko : 1M O FOS antity: 1 etherlaeln: sinds 04-200 lat Qu N igin: : 09-201 6 ie llatie perio mst: Wh r op v t ry o f o e rio d era erm de: 0 Span Co u n n p M W t ion oge 9-20 je uctio : 75 01- ee n: 1 16 Prod apacity al: since l: s C i o n ind 0kW o p erat s0 ce Devi Hoe ARDG A 7-2 In La odu latie atio Cou 01 Ho va epe rmo el: W vee herk ode en: nds st veel Pr stal per ntry AS nd ct ve ne 0 heid IN lh In tie o al O Prod van herk : 1MW e la D eid om 06- 3 M 08-2 v ucti oms h OP : st: 20 W G n e Dev Capac period t: Nede i LA 1MW Ita 16 ice o it e: 0 pera y 9-20 rland ND h lië ri t i o : 7 5 16 IOGAS FROM MANURE nee l: si HMWGEO Quantity: 1 MWh Lan nds oe T : d v 01v-2 ee0l HERM g si ntry of origin: Netherlands P ro a n 0h4ei IE oduction period: 05-2016 Ins Inst ducti herko d: 1M tall alla epe m W Capacity: 1 MW atie tiev rio st: I h op e d J e operational: since 03-2009 era rmog e: 02 sland tio - nee en: 13 2016 00 l: s 5 7 ind MW s1 0-2 008 h la n d s Conscious energy users are aware that O R DR MW her 16 HY ty: 1 Net 0-20 ti 00 5 SOLA MWh they have a choice and that this choice u : an rigin iod: W 04-2 1 n t i t y :1 pain has consequences for their environmental Qua Q f o per 5 M ce S y o on ty: sin i n : u ntr ucti aci al: Co rod Cap ation t r y o f orig : 09-2016 footprint. By doing so, the users show that P pe r Coun on period they take responsibility for their choice. cti 0kW 7-2010 e o De vic P r o d u i t y : 1 Consumers are increasingly conscious in c 0 Capa nal: since the choices they make when it comes to o p e ratio e Devic energy consumption. The demand for green energy continues to grow significantly. In 2016, 48 TWh of the energy consumption was green.

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    5 Financial statements 2016 Balance sheet as at 31 December 2016, after appropriation of profits 16 Profit and loss account for 2016 17 General notes 18 Principles for the valuation of the assets and liabilities 18 Principals for the determination of the result 20 Financial instruments and risk management 20 Notes to the balance sheet as at 31 december 2016, after appropriation of profits 21 Notes to the profit and loss account for 2016 24 Additional notes for 2016 26 Other information 27 Independent auditor’s report 28 (clickable table of content) 15 CertiQ 2016 Annual Report

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    Balance sheet as at 31 December 2016, after appropriation of profits (x EUR 1,000) Assets Ref. 31 December 2016 31 December 2015 Fixed assets 1 Intangible fixed assets 497 1,115 497 1,115 Current assets Receivables 2 Accounts receivable and other receivables 489 547 489 547 986 1,662 Equity and liabilities Ref. Equity 3 Paid up capital 18 18 18 18 Long term liabilities 4 Investment contributions - 113 Government subsidies 1 15 1 128 Current liabilities 5 Accounts payable - 24 Associated companies 29 859 Prepayments received 867 566 Accrued liabilities 71 67 967 1,516 986 1,662 16 CertiQ 2016 Annual Report

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    Profit and loss account for 2016 (x EUR 1,000) Ref. 2016 2015 Revenue 6 Revenue 2,235 2,142 Other operating income 210 240 2,445 2,382 Operating costs 7 Wages, salaries and social security costs 868 1,055 Amortisation of intangible fixed assets 619 618 Other operating costs 958 708 2,445 2,381 Operating result - 1 Financial income and expenses 8 Interest received/paid - -1 Result after tax - - 17 CertiQ 2016 Annual Report

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    General notes Nature of the business activities the notes to the relevant entry in the financial statements explain The Executive Board of TenneT TSO B.V., the Dutch Transmission the nature of the assessments and estimates, including the corresponding System Operator and administrator of the national high-voltage grid, assumptions. has been mandated by the Minister of Economic Affairs to establish an E-certification system. TenneT established CertiQ B.V. and appointed Principles for the valuation of the assets and liabilities CertiQ’s Senior Manager on the basis of a sub-mandate to set up this system and implement the activities associated with it. CertiQ does General this by facilitating trade in sustainably generated energy through issuing The financial statements are drawn up in accordance with the provisions and managing production certificates. Production certificates, such as of Title 9, Book 2, of the Netherlands Civil Code (‘Burgerlijk Wetboek’), Guarantees of Origin, are issued for the production of energy generated and the Accounting Standards for small legal entities, as published by with the sustainable sources solar, hydro-electric, wind, biomass and the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’). geothermal. Guarantees of Origin which are provided electronically are The valuation principles are based on historical cost and cost price. the only valid proof in the Netherlands that energy has been generated in a sustainable manner. The certificates for sustainable energy may be The amounts included in the financial statements are denominated in eligible for subsidies under the statutory schemes of the Sustainable EUR x 1,000. Energy Production Incentives (SDE+) scheme and the Environmental Quality of Electricity Generation Act (MEP). They are also nationally Assets and liabilities are, in general, valued at the acquisition cost and internationally tradable. On request, CertiQ also issues production or manufacturing cost, or the actual value. certificates for non-sustainable sources. Comparison to previous year All shares in CertiQ are held by TenneT. The accounting principles remained unchanged compared to those used in the previous year. Estimates In applying the principles and regulations for drawing up the financial Intangible fixed assets statements, CertiQ’s management makes various assessments and The intangible fixed assets are valued at the original acquisition cost or estimates that may be essential for the amounts shown in the financial production cost, after deducting linear amortisation based on the asset’s statements. Where the nature of these assessments and estimates must economic life. Expected long term loss of value at the balance sheet date be disclosed to offer the reader the level of understanding required under is taken into account. Article 2:362, sub 1 of the Netherlands Civil Code (‘Burgerlijk Wetboek’), 18 CertiQ 2016 Annual Report

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    Each year at the balance sheet date, CertiQ assesses whether there are Cash and cash equivalents any indications that a fixed asset may be subject to impairment. If such Liquid assets consist of bank balances with a term of less than twelve indications exist, the realisable value of the individual asset is determined. months and are valued at their nominal value. If it is not possible to determine the realisable value for the individual asset, the realisable value of the cash flow generating unit of which Long term liabilities the asset is part will be determined. Impairment exists when the book Long term liabilities consist of investment contributions and government value of an asset is higher than the realisable value; the realisable investment subsidies. value is the higher of the net realisable value and value in use. The net realisable value is determined with the aid of the active market. Investment contributions and government investment subsidies received An impairment loss is directly recognised as a cost in the profit and are accounted for on the balance sheet. Concurrent with the economic loss account. life of the asset to which the subsidy relates, an amount is released annually and added to Other income. If it is determined that an impairment accounted for in the past no longer exists or has decreased, the increased book value of the asset Current liabilities concerned will not be recognised for a value higher than the book value Upon initial entry, current liabilities are carried at nominal value. which would have been determined if the impairment of the asset had After the initial entry they are carried at amortised cost price. not been accounted for. Current liabilities comprise the entries ‘To be adjusted in tariffs’ and Current assets the current part of the ‘Investment contributions’ and ‘Government Upon initial entry, receivables are valued at the fair value of the investment subsidies’. ‘To be adjusted in tariffs’ relates to the difference consideration. After the initial entry, trading receivables are valued at between Invoiced revenue and Operating cost related thereto, which amortised cost price. If payment on the accounts receivable is postponed needs to be settled with the market parties through the tariffs of under an agreement extending the payment deadline, its fair value is subsequent years. determined on the basis of the cash value of the expected receivables, and adjustments are made to the ‘interest received’ entry in the profit and loss account. Provisions for bad debts are subtracted from the book value of the receivable. 19 CertiQ 2016 Annual Report

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    Principles for the determination of the result Financial income and expenses Interest income and Interest charges are allocated in proportion to time, Revenue taking into account the effective interest rate of the assets and liabilities In article 29 of the ‘Regulation on Guarantees of Origin for energy to which they relate. generated with renewable energy sources and on high-efficient cogeneration electricity’ the tariffs are stated which apply to recover Taxes the costs related to Guarantees of Origin. Because CertiQ adjusts the difference between Invoiced revenue and Operating costs in the tariffs of subsequent years, there can be no fiscal With effect from 2015 the tariffs are set by the Minister after approval result. The tax to be paid is therefore nil at all times, as agreed with by the Board of TenneT and consultation with the Participants’ Council. the Dutch Tax authorities. The difference between actual cost and invoiced revenue is adjusted in the tariffs of subsequent years. Financial instruments and risk management Other income comprises the annual release of investment contributions, Price risks government investment subsidies and compensation of the work carried CertiQ is not subject to any price risks due to the fact that any surplus out by CertiQ staff on various projects, such as AIB and CA-RES. or deficit is adjusted in the tariffs of subsequent years. Operating costs Credit risks Operating costs are determined on a historical basis and allocated to CertiQ does not have any significant concentrations of credit risk. the reporting year to which they relate. The credit risk is limited because the payment of invoices is a precondition for trading in certificates. The write-offs of Receivables are negligible. Amortisation of intangible fixed assets The amortisation of intangible fixed assets is determined in line with Liquidity risks the asset’s expected economic life, using the linear method. The liquidity risk for CertiQ is minimal. CertiQ has a current account with TenneT. TenneT does not have the intention to make a claim on this current account, as TenneT has mandated CertiQ for certification and is sufficiently solvent. 20 CertiQ 2016 Annual Report

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    Notes to the balance sheet as at 31 December 2016, after appropriation of profits (x EUR 1,000) 1 Fixed assets Intangible Intangible fixed assets Purchase price fixed assets in formation Total Intangible fixed assets The website, the E-certification system (myCertiQ I), the sustainable heat As at 31 December 2015 3,182 - 3,182 system (MyCertiQ II) and BO reporting (data warehouse) are recognised Capitalisations - - - under Intangible fixed assets. An amortisation period of five years is Taken into service - - - applicable to myCertiQ I, myCertiQ II and BO reporting. As at 31 December 2016 3,182 - 3,182 The book value of Intangible fixed assets can be specified as follows Afschrijvingen (× EUR 1,000): As at 31 December 2015 2,066 - 2,066 Amortisation for the year 619 - 619 As at 31 December 2016 2,685 - 2,685 Boekwaarden As at 31 December 2015 1,115 - 1,115 As at 31 December 2016 497 - 497 21 CertiQ 2016 Annual Report

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    2 Receivables 4 Long term liabilities Accounts receivable and other receivables Investment contributions Accounts receivable consist of all receivables with a remaining maturity In 2011 it was agreed with the Participants’ Council that an amount of less than one year. As the credit risk is estimated to be negligible, of EUR 750 thousand be deducted in 2012 from ‘To be adjusted in no provisions for bad debts have been deducted from this entry. tariffs’, as stated below. The balance of this entry has been used for the new E-certification system myCertiQ I. An amount equal to the Accounts receivable can be specified as follows (x EUR 1,000): amortisation cost is released each year and allocated to Other operating income. At the end of 2016, this entry amounted to 0. The current part 2016 2015 is accounted for under Current liabilities. The remaining term of Accounts receivable 440 481 the investment contributions is less than one year. Receivables from TenneT 49 32 Other receivables - 34 Government investment subsidies Total 489 547 In 2012, CertiQ received a government subsidy of EUR 70 thousand from the Ministry of Economic Affairs for the preparation of the certification system for renewable heat (myCertiQ II). An amount equal to the 3 Equity amortisation cost is released each year and allocated to Other operating income. At the end of 2016, this entry amounted to EUR 1 thousand. Paid up capital The current part is accounted for under Current liabilities. The remaining The authorised capital of the company amounts to EUR 90 thousand, term of the government investment subsidies is less than two years. divided into 900 shares of EUR 100 each. Of these shares, 180 shares have been issued and paid up. 22 CertiQ 2016 Annual Report

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    5 Current liabilities The balance of ‘Prepayments received’, including the amount which is to be adjusted in the tariffs for subsequent years, can be specified Accounts payable as follows (× EUR 1,000): Accounts payable only comprise debts with a remaining term of less than one year. 2016 2015 To be adjusted in tariffs - 740 - 402 Associated companies Investment contributions - 113 - 150 This entry refers to the current account with TenneT. On the balance Government investment subsidies - 14 - 14 of this current account with TenneT, interest is charged in accordance Balance as at 31 December - 867 - 566 with the one-month Euribor +0.55 percent. Prepayments received Accrued liabilities This relates mainly to the difference between Invoiced revenue and Accrued liabilities relate to annual leave to be paid and costs to be paid. Operating costs of CertiQ (EUR 867 thousand), which will be settled Costs to be paid consist of provisions for costs for the annual report and with the market parties through the tariffs of subsequent years. costs for hiring personnel and consultancy services. The tariffs are set annually by the Minister of Economic Affairs after approval by the Board of TenneT and consultation with the Participants’ Council. ‘Prepayments received’ also include the current part of the investment contributions and government investment subsidies. 23 CertiQ 2016 Annual Report

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    Notes to the profit and loss account for 2016 (x EUR 1,000) 6 Revenue On the request of the Ministry of Economic Affairs, with effect from 2015 CertiQ has set the tariffs for heat and biomass at a level that they In the year under review invoicing took place on the basis of pre-set cover costs by introducing a surcharge for these two specific energy tariffs. The amount needed to cover costs was EUR 2,445 thousand. sources. This ensures that CertiQ can further specify revenue from The surplus of EUR 337 thousand is added to the balance sheet entry transactions by two types of work (× EUR 1,000): “to be adjusted in tariffs” on (the liability side of) the balance sheet. Revenue 2016 2015 The difference between invoiced revenue and costs will be settled Regular activities 2,276 1,798 with differences brought forward from previous years. Extra work for heat and biomass 242 204 Total 2,518 2,002 Revenue can be specified as follows (x EUR 1,000): 2016 2015 Other operating income Memberships 54 48 Other operating income comprises the release of the investment Transactions 2,518 2,002 contribution for myCertiQ I in proportion to the depreciation of To be adjusted in tariffs - 337 92 the asset for which the investment contribution is intended and other Total 2,235 2,142 income. Other income consists of, on the one hand, a contribution by the Ministry of Economic Affairs for operational activities in respect of the certification of renewable heat and, on the other hand, the release Revenue from transactions can be specified by type of transaction of the subsidy for myCertiQ II. In addition, CertiQ receives compensation (× EUR 1,000): for the work undertaken in connection with the ‘Concerted Action on the Renewable Energy Sources Directive (CA-RES)’ of the Netherlands 2016 2015 Enterprise Agency for the period January through July and compensation Issuance of certificates 619 522 for activities undertaken for AIB. Transfers/import/export of certificates 880 713 Cancellation of certificates 1,019 767 Total 2,518 2,002 24 CertiQ 2016 Annual Report

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    Other operating income can be specified as follows (x EUR 1,000): The reduction in personnel costs was the result of vacant positions for, amongst others, Policy officer, Service Desk officer and Senior Manager. 2016 2015 Amortisation of intangible fixed assets Release of investment contribution from myCertiQ I 150 150 The entry amortisation of intangible fixed assets remained unchanged Other income 60 90 compared to 2015. Total 210 240 Other operating costs Other operating costs consist of costs for process automation 7 Operating costs systems, office premises, consultancy, an external auditor, travel and accommodation. Other operating costs increased mainly because of Wages, salaries and social security costs the movement from the wages and salary costs of the Functional The company does not employ any employees. In 2016 the average Application manager to the costs for process automation, see reduced number of hired employees amounted to: costs for wages, salaries and social security contributions. This increase - hired from TenneT: 10.1 fte (2015: 11.9 fte); was also in part the result of maintenance on myCertiQ according to - hired from third parties: 1.2 fte (2015: 0.7 fte). the budget. Personnel costs can be specified as follows (x EUR 1,000): 8 Financial income and expenses 2016 2015 Interest paid Hired from TenneT 845 1,041 This entry is nil and relates to the interest paid on the balance of Hired from third parties 23 14 the current account with TenneT. Total 868 1,055 25 CertiQ 2016 Annual Report

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    Additional notes for 2016 Off-balance sheet rights and obligations Events after the balance sheet date CertiQ, with TenneT Holding B.V. and its subsidiaries, is part of a fiscal No events have taken place after the balance sheet date that need entity for company tax and value added tax purposes. On the basis of disclosing in these financial statements. the standard conditions as issued by the Dutch Tax authorities when the fiscal entity was established, CertiQ is jointly and severally liable for Arnhem, the Netherlands, 18 April 2017 the company tax and value added tax liabilities of the whole fiscal entity. C.C. Krijger J. van der Lee B.G.M. Voorhorst CertiQ has concluded three agreements to hire staff from other Manager CertiQ B.V. Manager CertiQ B.V. Chief Operating Officer employers. These involve an agreement for the structural provision after 1/4/17 until 1/4/17 TenneT TSO B.V. of legal advice (term: January - December 2016) for which the costs amount to approximately EUR 44 thousand, an agreement for external CertiQ B.V. technical advice (term: January - December 2016) for which the costs Utrechtseweg 310 amount to approximately EUR 76 thousand, and an agreement for hiring 6812 AR Arnhem a policy officer (term: January - July 2016). These agreements stipulate The Netherlands the fixed rate per hour and/or day to be charged for the use of these services. 26 CertiQ 2016 Annual Report

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    Other information Appropriation of profits The appropriation of profits as stipulated in article 29 of the Articles of Association reads as follows: 1 Profits will be distributed in accordance with the provisions of this article, after adoption of the financial statements, showing that this is justified. 2 The profits are at the disposal of the general meeting of shareholders of CertiQ. 3 The company may only make distributions to the shareholders and other persons entitled to the profits intended for distribution to the extent that the shareholders’ equity exceeds the subscribed capital plus the reserves which must be maintained by law. 4 A deficit may only be offset against the reserves prescribed by law to the extent permitted by law. 27 CertiQ 2016 Annual Report

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    Independent Auditor’s report To: the management board and the shareholder of CertiQ B.V. respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening Report on the audit of the financial statements 2016 included gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics). in the annual report We believe the audit evidence we have obtained is sufficient Our opinion and appropriate to provide a basis for our opinion. We have audited the financial statements 2016 of CertiQ B.V., based in Arnhem. Report on other information included in the annual report In our opinion, the financial statements give a true and fair view of In addition to the financial statements and our auditor’s report thereon, the financial position of CertiQ B.V. as at December 31, 2016 and of its the annual report contains other information that consists of: result for the year then ended in accordance with Part 9 of Book 2 of - The management board’s report. the Dutch Civil Code. - Other information pursuant to Part 9 of Book 2 of the Dutch Civil Code. The financial statements comprise: Based on the following procedures performed, we conclude that - The balance sheet as at 31 December 2016. the other information: - The profit and loss account for 2016. - Is consistent with the financial statements and does not contain - The notes comprising a summary of the accounting policies and material misstatements. other explanatory information . - Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code. Basis for our opinion We conducted our audit in accordance with Dutch law, including We have read the other information. Based on our knowledge and the Dutch Standards on Auditing. Our responsibilities under those understanding obtained through our audit of the financial statements standards are further described in the “Our responsibilities for the audit or otherwise, we have considered whether the other information contains of the financial statements” section of our report. material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the We are independent of CertiQ B.V. in accordance with the Verordening Dutch Standard 720. The scope of the procedures performed is less than inzake de onafhankelijkheid van accountants bij assurance-opdrachten the scope of those performed in our audit of the financial statements. (ViO, Code of Ethics for Professional Accountants, a regulation with 28 CertiQ 2016 Annual Report

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    Management is responsible for the preparation of the other information, for our opinion. including the management board’s report in accordance with Part 9 Our audit has been performed with a high, but not absolute, level of Book 2 of the Dutch Civil Code and other information pursuant to of assurance, which means we may not have detected all material Part 9 of Book 2 of the Dutch Civil Code. errors and fraud. Description of responsibilities for the financial statements 2016 Misstatements can arise from fraud or error and are considered material included in the annual report if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of Basis for our opinion these financial statements. The materiality affects the nature, timing Management is responsible for the preparation and fair presentation and extent of our audit procedures and the evaluation of the effect of the financial statements in accordance with Part 9 of Book 2 of of identified misstatements on our opinion. the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable We have exercised professional judgment and have maintained the preparation of the financial statements that are free from material professional skepticism throughout the audit, in accordance with misstatement, whether due to fraud or error. Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included e.g.: As part of the preparation of the financial statements, management is - Identifying and assessing the risks of material misstatement of responsible for assessing the company’s ability to continue as a going the financial statements, whether due to fraud or error, designing and concern. Based on the financial reporting frameworks mentioned, performing audit procedures responsive to those risks, and obtaining management should prepare the financial statements using the going audit evidence that is sufficient and appropriate to provide a basis concern basis of accounting unless management either intends to for our opinion. The risk of not detecting a material misstatement liquidate the company or to cease operations, or has no realistic resulting from fraud is higher than for one resulting from error, alternative but to do so. Management should disclose events and as fraud may involve collusion, forgery, intentional omissions, circumstances that may cast significant doubt on the company’s misrepresentations, or the override of internal control. ability to continue as a going concern in the financial statements. - Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate Our responsibilities for the audit of the financial statements in the circumstances, but not for the purpose of expressing an opinion Our objective is to plan and perform the audit assignment in a manner on the effectiveness of the company’s internal control. that allows us to obtain sufficient and appropriate audit evidence - Evaluating the appropriateness of accounting policies used and 29 CertiQ 2016 Annual Report

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    the reasonableness of accounting estimates and related disclosures We communicate with management regarding, among other matters, made by management. the planned scope and timing of the audit and significant audit findings, - Concluding on the appropriateness of management’s use of including any significant findings in internal control that we identify the going concern basis of accounting, and based on the audit during our audit. evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s Zwolle, 18 April 2017 ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s Ernst & Young Accountants LLP report to the related disclosures in the financial statements or, if such signed by A.E. Wijnsma’’ disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern. - Evaluating the overall presentation, structure and content of the financial statements, including the disclosures. - Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 30 CertiQ 2016 Annual Report

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    GO WIND O N Quanti SHORE Countr ty: 3 M y of ori Wh Produc g i n : An increasing number of users want to tion pe Netherlands Capaci riod: 01-2016 make the difference with their energy Device ty operati : 120 MW choice. As a result, the price of Guarantees onal: s ince 03 of Origin has been increasing for specific -2011 sources. This can offer just that little extra return to the producer, thus enabling further investments in sustainable energy. In 2016, the total capacity of wind turbines in the Netherlands exceeded the 4,000 MW level for the first time.

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    Appendix: CertiQ works together with... CertiQ has active partnerships with a number of parties in Authority for Consumers & Markets (ACM) the sustainable energy sector. To name a few: ACM is the regulator for the Dutch energy sector. Its duties include supervising the correct implementation of and compliance with the 1998 TenneT TSO B.V. Electricity Act and statutory schemes which are executed by CertiQ. TenneT TSO BV, part of TenneT Holding B.V., is Europe’s first cross-border electricity transmission system operator. With approximately 22,000 Regional grid operators kilometres of high voltage lines and approximately 41 million end users Regional grid operators are responsible for the transmission of electricity in the Netherlands and Germany, TenneT ranks among the top five grid over the public electric grid. In relation to CertiQ, the grid operators operators in Europe. TenneT’s focus is to develop a Northwest European are responsible for assessing applications to register production plants energy market and to integrate sustainable energy. Under mandate of and for periodically submitting electricity metering data to CertiQ. the Ministry of Economic Affairs, TenneT established the E-certification system for sustainable energy. CertiQ manages this system, which is Metering companies linked to TenneT’s electronic infrastructure, on behalf of TenneT. TenneT Metering companies are responsible for installing and maintaining is the only shareholder in its subsidiary CertiQ. electricity meters, collecting the data for heat and electricity from the meters and submitting this information to the regional grid operator Netherlands Enterprise Agency (RVO) or CertiQ. RVO implements government policies on innovation and sustainable development and is part of the Ministry of Economic Affairs. RVO Producers manages, amongst others, the SDE(+) and MEP subsidy schemes, which Producers generate electricity or heat and supply it to a grid, or subsidise the generation of renewable energy that is certified by CertiQ. consume it on-site. CertiQ certifies the energy generated in order to make the origin of the energy transparent and traceable. Ministry of Economic Affairs The Ministry of Economic Affairs is responsible for, amongst others, policy making in relation to sustainably generated electricity. CertiQ consults regularly with the Ministry to align its policies regarding developments that affect CertiQ. 32 CertiQ 2016 Annual Report

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    Traders Association of Issuing Bodies (AIB) Traders enter into agreements with producers in connection with The AIB is an international partnership of energy certification system the purchase of Guarantees of Origin or other certificates. A producer administrators, of which CertiQ is a member. The members of the AIB informs CertiQ of the trader it does business with. CertiQ credits issue Guarantees of Origin. The AIB seeks to standardise certification the corresponding Guarantees of Origin to the account of this trader. systems to facilitate international trade. For this purpose it has A trader can trade the certificates or use them as proof of delivery to developed a common standard: the EECS Standard. In its Renewable end users. Energy Directive of 2009, the European Commission has made many elements of the EECS Standard mandatory. Energy suppliers Energy suppliers are companies that purchase energy (including grey Statistics Netherlands (CBS) and green electricity) and sell it to commercial and private users. CertiQ sends statistics to CBS on the electricity generation it has It is therefore the energy supplier who has the supply contract with certified on a monthly basis, in accordance with an agreement the customer. Every energy supplier in the Netherlands that wishes to concluded between TenneT/CertiQ and CBS. CBS processes the data supply green electricity must have a certificate account with CertiQ. for its publications. Participants’ Council CertiQ has established the Participants’ Council for an optimal alignment with the needs of its participants. Its members represent the interests of all participants in the E-certification system. The Participants’ Council comprises producers, traders (including foreign traders operating in the Netherlands) and representatives of several large energy suppliers. In drawing up its annual plan, CertiQ explicitly takes into account the Council’s advice. 33 CertiQ 2016 Annual Report

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    Address CertiQ B.V. is a subsidiary of TenneT TSO B.V., the Dutch Transmission System Operator and network manager of the national electric grid. CertiQ B.V. Utrechtseweg 310 6812 AR Arnhem Postbox 718 6800 AS Arnhem The Netherlands +31 (0) 26 373 16 58 servicedesk@certiq.nl www.certiq.nl Colophon © This annual report is a digital publication by CertiQ B.V., Arnhem Text CertiQ, TenneT Design Loep ontwerp, Arnhem Translation Ray Vertaalservices, Warnsveld Published 18 April 2017 34 CertiQ 2016 Annual Report

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