Certificates attesting the renewable origin of energy: how they work and how to leverage them.
Guarantees of Origin (GO) are electronic certificates attesting that a given quantity of energy (1 MWh) was produced from renewable sources. They are the official European instrument for green energy traceability.
The Guarantees of Origin flow
How they work
For every MWh produced by a qualified renewable plant, GSE (Gestore dei Servizi Energetici) issues a GO. These can be sold separately from physical energy, allowing any consumer to "certify" their consumption as renewable by purchasing GO on the market.
GO prices by source
| Renewable source | Price range (EUR/MWh) | Availability | Additionality |
|---|---|---|---|
| Hydroelectric | 0.50 - 2.00 | High | Low (existing plants) |
| Wind | 1.50 - 5.00 | Medium | Medium |
| Solar | 2.00 - 6.00 | Growing | High |
| Biomass | 3.00 - 8.00 | Limited | Medium |
The GO market
GO are traded on the GSE platform and European markets. The price varies based on technology (wind, solar, hydro), location, and demand. In recent years, prices have fluctuated between 1 and 8 EUR/MWh, with an upward trend linked to growing ESG demand.
Business use
GO allow companies to declare their energy comes from renewable sources in sustainability reports, GHG accounting (Scope 2 market-based), and commercial communications. They are increasingly required in international supply chains and by ESG platforms like CDP and Science Based Targets.
It is important to distinguish between "standard" GO (purchased on the market) and GO from direct PPA contracts, which offer a higher level of additionality and traceability.
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