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.
Energinet issues guarantees of origin
When the energy is supplied to the collective Danish energy system, Energinet is the issuing body for guarantees of origin for renewable electricity, gas and hydrogen.
A guarantee of origin has a value of 1 MWh renewable energy
The underlying goal of GOs is to facilitate consumer choice, which indirectly could act as a market incentive for renewable production.
A Guarantee of Origin (GO) is a certificate under the Renewable Energy Directive (RED II) that attests the renewable origin of energy. It allows energy producers to prove that their energy comes from renewable sources and provides consumers with the assurance that their consumption supports the production of clean energy.
GOs are transferable and can be traded in the market, providing a mechanism for renewable energy producers to demonstrate the renewable origin of their energy and for consumers to choose to support renewable energy.
Rules and legislation
The process of documentation from production to final consumption
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
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.