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CRM prequalification: what about your existing CHP?

by | 2 Jun 2021 | CHP, Legislation

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The Capacity Remuneration Mechanism, or CRM for short, is a new support mechanism for electrical capacity on the Belgian market. It is part of the federal government’s energy strategy to ensure Belgium’s long-term security of supply. The purpose of the CRM is to compensate holders of electrical capacity (e.g. owners of CHP plants) to make part of this capacity available on the market under certain conditions for a specific period of time. Therefore, an auction will soon be organised for the first one-year delivery period starting in November 2025. In order to participate in the auction, a pre-qualification is required. Here all data and documents are collected to determine whether the capacity holder is able to bid at the auction. For some capacity holders it is a mandatory process with an option to withdraw before the auction. It is important to note that the CRM cannot be combined with other forms of variable subsidies (e.g. certificate support) in the same period. Parties interested in the CRM must conditionally commit to renounce all their previous variable grants if selected.

What does this mean for your CHP plant?

Prequalification is not compulsory for all CHP owners:

  • If you are still entitled to certificates during the delivery period (November 2025 and November 2026), and thus already have operational support, you will not be eligible for the auction and thus have no obligation to participate in the prequalification.
  • If you still wish to do so in order to possibly participate in the CRM, you will have to make a declaration in which you renounce the certificates in the periods that you have been selected to participate in the CRM.
  • Owners of a CHP above 1613 kW (corresponds to 1000 kW after derating of 62%) who still have certificates but which expire in 2023 or 2024 are legally obliged to pre-qualify, because they will no longer receive operational support in 2025.
  • CHPs with lower capacities cannot participate directly in the CRM and therefore do not have a CRM prequalification obligation.

 

How can I pre-qualify for the CRM?

There are two ways to prequalify:

  • or follow the “Fast Track” pre-qualification process and not participate in the auction;
  • or go through the Standard pre-qualification process and participate in the auction.

Here it is especially important to weigh up whether or not the revenue from the certificates is more interesting than the CRM support (€20,000/MWderated/year). Currently, we recommend customers with a > 1613 kWe CHP without certificates after November 2025 to:

  • Create an account as soon as possible via this link below
  • To choose the “Fast Track” pre-qualificationprocess if you have insufficient certainty about the availability of CHPs in 2025-2026 or do not intend to make your capacity available and therefore do not wish to participate in the Y-4 CRM auction; If you choose this option, you can still participate in the Y-1 auction in 2024 for the period November 2025-2026. In addition, the choice now for “Fast Track” prequalification process no impact on participation in auctions for other periods
  • Go trough the Standard pre-qualificationprocessif you intend to make your capacity available and have sufficient certainty about the availability of the CHPs in 2025-2026

You can take part in the pre-qualification until 15 June via this link: https://ademar.elia.be/#/ More information on www.elia.be or contact us. We are happy to advise and assist you.

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