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Guarantees of origin

The purpose of guarantees of origin (GOs) is to track the attributes of a given megawatt-hour (MWh) of renewable energy from production to consumption. In doing so, the system allows final customers to know the origin of the energy supplied to them.

The underlying goal of GOs is to facilitate consumer choice, which indirectly could act as a market incentive for renewable production.

Rules and legislation

The basic principles of guarantees of origin are based on REDII and written into Danish law:
Danish law: Bekendtgørelse 1216 of 7 June 2021
No matter if the energy source is electricity, gas, or hydrogen, all guarantees of origin are issued, documented, and traded following the same overall principles:
  • Account holder registration

    GOs are held in accounts of electronic registries which are managed by Issuing Bodies. Energinet is the issuing body for electricity, gas and hydrogen in Denmark when the energy is supplied to the collective energy system.

  • Production device registration

    Issuing of GOs is based on measured energy output from registered production devices. For this purpose, all production devices are registered in the GO registry.

  • Issue of guarantees of origin

    Issuing of GOs is made periodically every month for measured energy output from registered production devices. The energy output data is derived from transmission or distribution system operator’s data which automatically portrays the accurate amount of energy production.

    Issued GOs are deposited on the GO Account(s) of registered account holders. Each GO represents a value of 1 MWh of energy and the information content of a GO, the attributes of the unit of energy, consists of the standing information of the production device as well as information specific to the production such as the energy source, production time, received support). Once the GO is issued, the information contained on a GO is immutable.

  • Transactions of guarantees of origin

    Account holders may access their GO accounts to perform transactions such as the transfer of a GO to another account holder’s account. GO transfers take place within a national registry or through integrations with European Hubs to other European registries. GOs may be transferred independently from the transfer of the energy to which they relate.

  • Cancellation

    The cancellation (use) of a GO enables a claim on the origin of the energy supplied to a final customer. Cancellation hence means the realization of the value of the GO for the disclosure of energy origin to a final customer. An account holder who performs a Cancellation unambiguously designates the sold energy to which the Cancellation relates.

  • Expiry
    If guarantees of origin have not been cancelled within a period of 12 months, they will automatically expire in the registry.
  • Price

    The price of guarantees of origin varies and Energinet is not involved in the price setting of GOs. This is entirely up to the market.