Guarantees of Origin (GOs)
What Is a GO?
A Guarantee of Origin (GO) is a type ofEAC that is used to track and trace renewable energy in Europe. GOs are issued by national authorities in each European country. GOs account for 1MWh of renewable electricity and state the origin, technology, region, and vintage.
GOs can be traded across national borders to other countries with grid connection with the European single energy market and the AIB.
Why Are GOs Important?
GOs play a crucial role by tracing and attributing ownership to renewable electricity generation and consumption, a process particularly vital because the physical electricity reaching users via the utility grid doesn’t disclose its origin or the method of generation.
In essence, GOs ensure that companies purchasing renewable energy truly receive it, even when distinguishing renewable energy from other gird sources is physically impossible. This is achieved through the meticulous tracking of renewable energy generation and its utilization (retirement/redemption).
Like other EACs, GOs contribute to promote the use of renewable energy and reduction of greenhouse gas emissions.
How to Trade GOs
How to Trade GOs
GOs are applicable throughout Europe within countries participating in the European GO market. The European GO market is a voluntary marketplace facilitating the buying and selling of GOs by companies and individuals. GOs are similar to US-RECs in a way that US-RECs can also be traded across the US. However, unlike GOs,I-RECs lack the flexibility to be traded between different I-REC regions. Consequently, a company cannot offset energy use in a Colombian factor with Chinese I-RECs. In contrast, GOs empower companies to procure Italian GOs to offset energy use in a factory located in France for example.
GOs, tradable on the European market, enable companies across Europe to demonstrate sustainability commitments. Like other EACs, GOs can be traded OTC style, through exchanges, and via aggregators.
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