The Guarantee of Origin (GO), issued by national issuing bodies of the AIB and following article 15 of Directive 2009/28/EC, represents a certificate with a value of 1 MWh of the electricity supplied into the grid by qualified power plants.
Energy suppliers can only use the Guarantee of Origin to verify that each MWh of energy comes from renewable sources (biomass, hydro, wind, solar).
According to the provisions of the European Community, energy producers and suppliers need to provide information to their end customers regarding the composition of the energy mix they use, stating its environmental impact.
The RECs (present in North America) and the I-RECs (outside North America and EU) systems aim to promote and provide economic support to the environmental value of electricity produced from renewable energy sources. Similar to GOs, RECs and I-RECs certify 1 MWh of electricity from renewable sources during the year of issue.
The RECs and I-RECs certificates are distinct from the physical supply of electricity, meaning they can be marketed separately from the referred electricity. By using them, buyer finances the electricity produced from renewable sources, thus testifying their commitment to the environment.
The Renewables Obligation (RO) is one of the primary backing mechanisms for large-scale renewable electricity projects in the UK.
The RO came into effect in 2002 in England and Wales and Scotland, followed by Northern Ireland in 2005. It places an obligation on UK electricity suppliers to source an increasing proportion of the electricity supplied from renewable sources.
ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. Suppliers ultimately use ROCs to demonstrate that they have met their renewable obligation.
The Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable generation in Great Britain and Northern Ireland.
The Office of Gas and Electricity Markets (OFGEM) issues one REGO certificate per megawatt-hour (MWh) of eligible renewable output to renewable electricity generators. The reason behind this certificate is to inform the final customer that the produced energy was from renewable sources. The primary use of REGOs in Great Britain and Northern Ireland is for Fuel Mix Disclosure (FMD).
FMD requires licensed electricity suppliers to disclose to potential and existing customers the mix of fuels (coal, gas, nuclear, renewable, and other) used to generate the electricity supplied. Renewable generators of any size in Great Britain and Northern Ireland can apply for the scheme.
Domestic Guarantees of Origin (GdOs), or Garantías de Origen Domésticas, in Spanish, are certificates that verify the source and characteristics of electricity generated from renewable energy sources within Spain.
They are part of the broader system of guarantees of origin, which provides transparency and accountability in the energy market by ensuring that consumers can trace the origin and environmental attributes of the electricity they use.
The Energy Efficiency Directive sets mandatory annual targets for reducing energy use across the European Union (EU). It is a critical component of the EU’s goal to achieve carbon neutrality by 2050 and Members must pursue ambitious targets to improve efficiency consumption.
Energy Saving Certificates (CAEs in Spanish) enable companies to enhance their energy efficiency and sustainability. CAEs certify the final energy savings accomplished by clean technologies and sustainable practices, providing a new opportunity to recover a big portion of investments in energy efficiency projects.
There are two main types of projects that can generate CAEs:
Standardized projects are crucial for the energy efficiency strategy, providing established techniques that can be adapted to various scenarios with identifiable energy consumption trends. These encompass activities such as enhancing lighting and HVAC systems, guaranteeing notable energy saving and benefits.
Conversely, individual projects tackle distinct energy efficiency issues that cannot be resolved through standardized methods. These projects require customized designs and comprehensive feasibility analyses to address their limitations.
Non-Fossil Certificates (NFC) are market-based instruments that certify electricity generated from non-fossil energy sources such as renewable energy in Japan and are traded through auctions and ensures alignment with global standards and voluntary targets. These certificates help businesses comply with Japan’s Renewable Portfolio Standard (RPS).
There are two types of NFCs: NFC FiT (Feed-in Tariff) and non-FiT NFCs.
Tradable Instrument for Global Renewables (TIGR) is financial instrument designed to facilitate investment in renewable energy projects on a global scale and helps corporates with their sustainability targets. TIGRs are issued through an online platform developed by APX that facilitates the tracking and transfer of Renewable Energy Certificates (RECs) aimed primarily in Asian jurisdictions (Singapore, Malaysia, Indonesia etc.).
APX offers developers a secure and reliable system for generating, verifying, selling and retiring RECs.
TIGRs support corporate end buyers to remain compliant to certain emissions reduction targets, guidelines and standards of action set by internationally recognized global organizations and climate groups that are committed to a more sustainable future.
NAR is a tradable instrument for North American renewable energy certificates. They seek to strengthen the integrity and transparency of the renewable energy market by delivering reliable data and robust verification processes that prevent double counting and build trust among stakeholders.
NAR aids in the growth of renewable energy markets in the region by enhancing access to renewable resources and promoting responsible energy consumption.
Through fostering collaboration among diverse participants, including energy producers, regulators, and consumers, NAR advocates for best practices in renewable energy tracking and reporting. This collaborative approach is vital for expanding and reinforcing the credibility of renewable energy markets across North America.
The Green Electricity Certificate (GEC) is a tradable instrument that represents the environmental benefits of generating electricity from renewable sources. Issuance of GECs is administered by state-owned China Renewable Energy Engineering Institute (CREEI), which has a key role in China’s carbon neutrality and renewable energy transition goals.
The purchase of GEC’s allows companies active in China to claim the environmental benefits from renewable energy generated electricity.
Companies use GECs for voluntary purposes and compliance regulatory requirements for state owned electricity distribution companies and retailers and meet their Renewable Energy Portfolio Standard (RPS) national policy, which annual renewable electricity consumption quotas are assigned to provincial entities.
The Taiwan Renewable Energy Certificate (T-REC) is a market-based instrument used in Taiwan to certify that electricity has been generated from renewable energy sources. T-RECs are managed by the National Renewable Energy Certification Centre, who establishes the REC mechanism, regulations, verification standards and tracking system to promote and monitor the production and retirement of renewable energy.
T-RECs enable developers to manage and certify the ownership of power generated from renewable sources such as solar, wind, biomass, and other technologies.
Companies purchase T-RECs to show their use of green electricity, which helps reduce their energy consumption’s carbon footprint and supports national and international targets, fulfilling CSR (corporate social responsibilities) and international sustainability objectives.
Korean Renewable Energy Certificates (K-RECs) is a market-based instrument in South Korea that certifies electricity generated from renewable energy sources. It is used to help companies and utilities meet their Renewable Portfolio Standard (RPS) obligations and voluntary green energy goals.
Transactions are managed through the government, which allows companies to execute. K-REC procurement process and ultimately claim the environmental benefits from renewable energy sources and ensures alignment with global standards and voluntary targets.
J-credit is a government-run carbon credit system for trading and retiring of carbon credits that focus on energy efficiency, renewable energy, afforestation / reforestation, agriculture and CCUS.
J-Credits from renewable energy complement NFCs but avoid double counting. The system enables individuals, businesses, and organizations in Japan to earn credits by reducing or removing greenhouse gas (GHG) emissions through projects such as renewable energy, energy efficiency, and forest conservation.
These can be sold, traded, and retired allowing companies to purchase them as offsets to meet sustainability or carbon neutrality goals. Adhering to these standards enhances sustainability credentials and strengthens corporate reputation of businesses that participate.
LGC is a tradable certificate created from eligible large-scale renewable energy power stations in Australia. These certificates are issued by an independent statutory authority responsible for administering legislation that promotes the development of renewable energy sources. LGCs provide a mechanism for both voluntary participation and compliance with the Renewable Energy Target (RET) scheme, which requires liable entities to retire a specified number of certificates to meet their obligations.
Adhering to these standards enhances sustainability credentials and strengthens corporate reputation of businesses that participate.
The Aither renewable energy team is here to guide you on your green energy journey and provide expert guidance and a variety of green power renewable certificates.