Guarantees of origin increasingly interest the private sector

The use of renewable energy is heavily discussed at the moment, especially in financial newspapers. As the discussion around climate change and the future of various industries heats up, many companies wish to show they are a part of the change. This has led to plenty of multinational companies to consider their emissions and either offsetting them, replacing energy consumption with renewables, or doing both depending on their situation.

The increased interest has naturally also increased the participation in concrete initiatives. In this blog we will focus on RE100. RE100. It is an initiative by the Climate Group that aims to get the world’s most influential companies committed to fully renewable power. The committed 254 companies combined consume 228 TWh of electricity yearly. In comparison, the consumption of Australia is 244 TWh.

The interest towards cutting down emissions is increasing internationally. RE 100 reports their membership grew by one third in 2019. Irrespective of sector, heavy or low emissions, everyone has their part to play. The sourcing of renewable energy has never been as easy as it is with the Energy Attribute Certificates (EAC) that are increasingly available globally. From the global perspective, there is a wide variety of certification schemes with varied levels of received support and approval by authorities.

Energy Attribute Certificates do not necessarily have to be acquired where they are used. This makes certain markets more appealing than others. In the EU, mainly Guarantees of Origin are used to express the origin of produced energy. This harmonization will only deepen with REDII making the market increasingly interesting and approachable for private sector actors.

In our view these are the key benefits of the European system especially for businesses:

• Reliability: Within EU the GOs are the mean to make claims on the origin of consumed electricity. If you own a GO, then you are the only who can claim to have consumed the electricity from the specified origin.
•  Compatibility: 26 European countries form a common market through voluntary EECS system. With RED II coming into force the compatibility is extended to all EU countries. Within the European EECS-system, all GOs are tradable. This allows companies to choose whether they purchase and cancel locally or act more broadly within the joint European marketplace.
• Developing joint market: The upcoming REDII and CEN-EN 163 25 regulations will improve both reliability and compatibility in Europe. Businesses can rely on continuous development.
• Comparability: The GOs carry all information about the origin of the electricity. Companies can choose freely to source renewable electricity, in general, or in more detail, e.g. regarding specific technology, location and additionality.