The Guarantee of Origin (GO) is the tracking certificate, that labels electricity attributes/ technology behind generated electricity, as regulated in the article 15 of the European Directive 2009/28/EC. In short, a GO is a "green label" which ensures that one MWh of electricity has been produced from a particular energy source. If the electricity customer buys power which has been certified with GOs, they can be certain that the equivalent amount of electricity has been produced from the energy source stated on the GO.
The GO is further standardized through the European Energy Certificate System (EECS) provided by the Association of Issuing Bodies (AIB). The EECS makes trade, cancelation and use of GOs standardized across AIB members.
The value of a GO is the extra price an electricity consumer is willing to pay for the attributes of the electricity i.e. value of a wind GO is given by how much a consumer is willing to pay more for electricity from wind when compared to undisclosed electricity. The price of a GO is affected by the supply and demand of the GO market.
Refers to the month and year when the electricity was produced.
GOs created in a month for electricity produced in an earlier month.
Transfer is the delivery process of GO from one party to another.
Import – export
GOs can originate from another country than the country of consumption. GOs can be imported (exported) from another country either via import (export), or via cancellation.
Cancellation of GO
Cancellation is analogous to physical ‘use’ of a GO certificate and is the method for allocating the attributes of the electricity to the single end-user. Cancelling a GO is the only way to redeem its benefits while ensuring that the certificate will not be traded, given, sold, or used by another end-user. Consumer information and avoidance of double counting is the main objective of this system.