A Guarantee of Origin (GO) agreement is a certification scheme that guarantees that the electricity suppliers have generated their energy from renewable sources such as wind, solar, hydro, and biomass. The GO agreement is a mechanism to track and certify the origin of the electricity produced from renewable sources.
In essence, a GO agreement provides a way to track, verify, and certify the renewable energy generated by a power plant. It is an assurance that the energy produced is indeed from renewable sources, and therefore, it helps to promote the use of renewable energy by providing a transparent method of verifying the source.
GO agreements are valuable for both renewable energy producers and consumers. Producers can use them to demonstrate the renewable nature of the energy they produce, which in turn can help attract environmentally conscious consumers who prefer to use energy from renewable sources.
On the other hand, consumers can use the GO as a way to ensure that the renewable energy they are purchasing is indeed from a renewable source. For example, an individual or a company that wants to use renewable energy can purchase Renewable Energy Certificates (RECs), which are created when the GO is issued.
In the European Union, GO agreements are mandatory for all Member States as part of the European Union`s Renewable Energy Directive. The directive requires EU Member States to implement national renewable energy action plans, including the establishment and implementation of a guarantee of origin scheme.
The GO agreement is important because it provides a common standard for renewable energy production and consumption across the European Union. It also ensures that the renewable energy produced in one Member State can be consumed in another Member State without discrimination.
In conclusion, the Guarantee of Origin agreement is an essential tool for promoting the growth and use of renewable energy. It provides assurance to both producers and consumers that the energy being produced is from a renewable source, and it helps to promote the use of renewable energy sources across the European Union.