Guarantee of origin
Encyclopedia
Since electricity is a commodity
, it used to be impossible to claim any specific quality for a particular quantity of electricity. However the use of guarantees of origin (GO) is changing this. The European Union is currently implementing a scheme which allows specific attributes to be assigned to particular quantities of electricity.
A guarantee of origin is similar to a label on a bottle: it carries information telling the consumer facts about the product. Controlling the information and the accuracy of the guarantee of origin is therefore of critical importance. A unique body (e.g. an electricity regulator or a transmission system operator) is usually granted this authority for a given domain.
In their most accomplished form, guarantees of origin are issued electronically for a controlled quantity of electricity generation (usually 1 GO per MWh), traded and redeemed (i.e. used) by suppliers as evidence to their customers of the quality of the delivered electricity. Generation from renewable energy sources is the most sought-after attribute. A new development concerns guarantees of origin for cogeneration heat plants (or CHP). Some countries already have guarantees of origin issued for all types of electricity generation (nuclear, coal, ...). Possible extensions also include fair-trade, CO2 statistics, ...
Guarantees of origin should not be confused with the Eugene Green Energy Standard
or EKOenergy
labelling scheme. Both provide consumers with more information about their power (transparency
). However, Eugene and EKOenergy go further by requiring additionality. Besides, Eugene and EKOenergy are private initiatives whereas guarantees of origin arise from European regulations.
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
, it used to be impossible to claim any specific quality for a particular quantity of electricity. However the use of guarantees of origin (GO) is changing this. The European Union is currently implementing a scheme which allows specific attributes to be assigned to particular quantities of electricity.
A guarantee of origin is similar to a label on a bottle: it carries information telling the consumer facts about the product. Controlling the information and the accuracy of the guarantee of origin is therefore of critical importance. A unique body (e.g. an electricity regulator or a transmission system operator) is usually granted this authority for a given domain.
In their most accomplished form, guarantees of origin are issued electronically for a controlled quantity of electricity generation (usually 1 GO per MWh), traded and redeemed (i.e. used) by suppliers as evidence to their customers of the quality of the delivered electricity. Generation from renewable energy sources is the most sought-after attribute. A new development concerns guarantees of origin for cogeneration heat plants (or CHP). Some countries already have guarantees of origin issued for all types of electricity generation (nuclear, coal, ...). Possible extensions also include fair-trade, CO2 statistics, ...
Guarantees of origin should not be confused with the Eugene Green Energy Standard
Eugene Green Energy Standard
The Eugene Green Energy Standard was an international standard to which national or international green electricity labelling schemes could be accredited to confirm that they provide genuine environmental benefits...
or EKOenergy
EKOenergy
EKOenergy label is an international ecolabel for energy. It is managed by the Finnish Association for Nature Conservation in cooperation with the Swedish Society for Nature Conservation...
labelling scheme. Both provide consumers with more information about their power (transparency
Transparency (market)
In economics, a market is transparent if much is known by many about:* What products, services or capital assets are available.* What price.* Where....
). However, Eugene and EKOenergy go further by requiring additionality. Besides, Eugene and EKOenergy are private initiatives whereas guarantees of origin arise from European regulations.