An evolution of renewable energy certification
Today, a renewable energy project generates two products: electricity and Guarantees of Origin (GOs). GOs are certificates that document that one megawatt-hour (MWh) of electricity has been produced from renewable sources. These certificates are issued on a monthly basis, where one GO equals one MWh of green electricity.
Soon, a new evolution of GOs will be ready for the market: granular guarantees of origin.
GGOs are issued in shorter time intervals - every hour or even every 15 minutes – precisely reflecting when renewable energy was produced. This level of detail makes renewable energy reporting more aligned with the grid’s real-time activity, allowing GGOs to accurately reflect a match between renewable energy production and energy consumption.
A 2022 study by Energinet’s Energy Track and Trace Initiative found that when GGOs and electricity use were matched within the same hour and bidding zone, there was a 95% probability that the consumption being 'greened' with GGOs was renewable at the time it was consumed.
This improved accuracy is why many companies are interested in applying GGOs to their emissions reporting.
The role of granular certificates in corporate energy procurement
To accelerate the energy transition, companies need new ways to purchase renewable energy and accurately report their emissions.
Power Purchase Agreements (PPAs) help with the first challenge, ensuring companies’ energy purchases result in new renewable energy projects, securing additionality – the direct link between corporate electricity purchases and the development of new renewable energy projects.
Granular Guarantees of Origin (GGOs) help with the second challenge, by ensuring deliverability in emissions reporting - the assurance that the GGOs used to ‘green’ consumption represent renewable energy that could have physically supplied that consumption.
Anders Engtoft Meldgaard, CCO of Reel, emphasises the need for GGOS to integrate into existing energy strategies:
The companies we work with care deeply about the real-world impact of their energy sourcing. That’s why many opt for Power Purchase Agreements (PPAs), which not only guarantee the development of new solar and wind projects but also provide long-term price stability.
GGOs bring that same real-world connection to Scope 2 reporting, by allowing companies to document, hour by hour, how renewable their electricity consumption was.
Just as PPAs address additionality, GGOs address accuracy. With both in hand, companies have the tools to drive real world action and report more precisely on their renewable energy consumption.
Looking ahead
More companies are beginning to take interest in the targeted sustainability insights GGOs enable, with large corporates like Google leading the pack. In response to this growing interest, Energinet, Denmark’s national transmission system operator, is exploring how it might best support this new technology’s introduction to the market.
Michael Gimm Holdensen, Product Owner of the Energinet initiative, says of the development:
Granular Guarantees of Origin (GGOs) mark a new chapter in renewable energy certification. GGOs could empower companies to align their energy reporting with real-time renewable production, by certifying matched production and consumption on an hourly basis, strengthening both accuracy and trust.
That is also why we are thrilled to have run this pilot with industry frontrunners, and we look forward to implementing the insights from our collaboration to help make hourly matching even more accessible, transparent and actionable.
Bruno Menu, COO of Granular Energy notes how:
Creating a GGO scheme will enable energy buyers to gain further insight into the impact of their electricity procurement, by highlighting when they are powered by renewables. Our software integrates with the Energinet pilot system’s registry, allowing utilities to smoothly allocate and report GGO matching to consumers.
As GGOs and the supportive technology infrastructure matures, Reel is preparing to offer GGO-based products to companies in 2026.
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