Our Price Explained

What are Guarantees of Origin?

Known as Guarantees of Origin (GOs) in Europe, these are quite simply electronic certificates that prove the electricity bought and consumed by an end-user comes from a certain type of generation i.e. renewable source. (The equivalent market in the US is Renewable Energy Certificates).

The value of a GO is the premium an electricity consumer is willing to pay for the attributes of electricity generated from a renewable source when compared to undisclosed electricity (usually a mix of fossil fuel, nuclear and renewable).

One GO certificate corresponds to 1 MWh of generation.
GOs' are traded on spot and forward contracts in OTC markets on a voluntary basis.

A GO is physically used, or consumed via the cancellation process, which is the method of allocating specific electricity to a single end-user. Cancelling a GO from the relevant national registry is the only way to remove a GO from the market and redeem its benefits. This is effectively the physical use or consumption of a GO.