Renewable energy attributes certificates
Renewable energy is a crucial part of the energy transition and achieving a sustainable future. As companies look for ways to support and promote clean energy, renewable energy attribute certificates, also known as Power Guarantees of Origin (GoOs) in Europe, have emerged as an important tool for incentivizing and tracking the growth of renewable energy assets.
What are Renewable Energy Attributes Certificates?
A renewable energy attribute certificate, also known as a Power Guarantee of Origin (GoO) in Europe, is a digital certificate that guarantees the equivalent of 1 MWh of renewable power has been injected into the grid. This mechanism is based on the traceability principle of “book and claim.” Producers who can prove they produce and inject renewable electricity into the grid can register the amount of this sustainable power on a dedicated registry and receive certificates in return. These certificates can then be traded on the market.
Energy suppliers or other market actors can purchase these certificates and “cancel” them on behalf of a final consumer, such as a company or individual. The consumer is then able to claim the sustainability attributes of the certificates they have purchased, effectively paying a premium for sustainable and responsible energy production.
The Traceability Model: Book and Claim
Because it is not possible to physically trace the electrons once they are injected into the grid, the only solution is to differentiate the physical flow of energy and its sustainability attributes. GoOs therefore serve as proof of participation in sustainable energy generation, rather than proof of consumption of renewable energy. This makes GoOs a powerful tool for incentivizing the growth of renewable energy assets and for consumers to actively support the energy transition.
Global Adoption of Renewable Energy Attributes Certificates
Renewable energy attribute certificates are a widely used mechanism globally, with different names and programs in different regions. In Europe, they are called Power Guarantees of Origin, while in the United States they are known as Renewable Energy Certificates (RECs). In the United Kingdom, they are referred to as Renewable Energy Guarantees of Origin (REGOs).
Limits of the Model
One of the main criticisms of the certificate system is that certificates can be used for up to 12 months after production, leading to concerns about “greenwashing.” To address this, TEO -The Energy Origin offers a 24/7 approach that matches consumption and production on an hourly basis. This ensures that decarbonized power is consumed at the same time it is produced, eliminating the possibility of greenwashing.
TEO: The Next Generation of Guarantee of Origin
TEO takes the certificate system to the next level with its innovative platform. Built on blockchain technology, TEO provides a secure and transparent solution for authenticating energy production and matching it with consumption. With a high level of granularity, TEO gives you access to production information and allows you to see exactly where your energy is coming from. And with the added security of blockchain technology, there can be no double-counting of sustainable attributes.