Guarantees of Origin (GOs)

What Are Guarantees of Origin (GOs)?

Guarantees of Origin (GOs) are digital certificates used to verify the renewable source of electricity across Europe. Issued under the EU Renewable Energy Directive, each GO represents 1 megawatt-hour (MWh) of electricity generated from renewable sources such as wind, solar, or hydropower.

How Do GOs Work?

Corporate energy buyers use Guarantees of Origin (GOs) to demonstrate their renewable energy usage, even if their actual power comes from a mixed grid. By purchasing and "retiring" enough GOs to match their consumption, they ensure an equivalent amount of renewable energy is being generated, enabling claims of 100% renewable energy use. In Europe, GO certificates can be traded across borders, allowing companies to prove renewable electricity consumption using a market-based approach, regardless of the energy mix in their local grid.

How Are GOs Used in Sustainability Accounting?

There are a number of voluntary reporting schemes (RE100, CPD) businesses report to in order to publicly declare their electricity emissions and show environmental leadership. Starting in 2025, the Corporate Sustainability Reporting Directive (CSRD, ESRS) is also coming into play which mandates that certain companies need to start reporting their sustainability information in compliance with the European Sustainability Reporting Standards (ESRS). This includes large EU-incorporated companies and non-EU companies that generate over €150 million in net turnover within the EU.

GOs and other EACs are used to substantiate renewable energy claims in environmental reporting. Disclosing businesses need to match the volume of electricity consumption with the same volume of valid GOs or other EACs globally to prove zero market-based emissions.

How to Manage Your Portfolio of GOs with Flexidao

For companies with a large, global electricity portfolio, effective tracking and data management of GOs and other EACs is essential for accurate billing and compliance with disclosure schemes like RE100, CDP and CSRD.

‍Flexidao simplifies Guarantees of Origin (GO) management by acting as a “registry of registries”. It integrates with both online and offline registries to consolidate all REC and other global EAC data on a single platform. This provides better visibility for organizations managing global electricity portfolios and allows for more effective compliance planning to meet disclosure standards. Flexidao also simplifies GO allocation by automating complex calculations, ensuring optimal, audit-ready results for global clean electricity reporting and compliance with standards like RE100 and CDP.

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