Granular Guarantees of Origin explained

Understanding Granular Guarantees of Origin 

 Guarantees of Origin are certificates of an energy source - they can verify where an energy source has come from and whether it’s a renewable source. Granular Guarantees of Origin are making certification a more competitive option for players in the energy market. More general Guarantees of Origin report annual compliance targets, whereas Granular Guarantees of Origin report more frequently.  

How do Granular Guarantees of Origin work?

Granular Guarantees of Origin work differently from other types of Guarantees of Origin because they can report on timestamps as close as half an hour apart. This allows more accurate control over tracking of renewable energy.  

The tracking process and data granularity 

The frequency of Granular Guarantees of Origin means more accurate reporting. This allows more accurate control over the tracking of renewable energy as energy procurers can track their renewable energy consumption down to half an hour increments.  

Role of blockchain and digital technologies in G-GOs 

As well as the maturation of the Guarantees of Origin sector to include more Granular options, the sector is also integrating new technologies to help make the management of Guarantees of Origin smarter. Blockchain is one of these technologies, utilising an energy-saving method that decentralises trading between peers. This process eradicates utility providers and brokers, which makes the process more transparent and streamlined. Energy usage is calculated and a price is fixed using Power Purchase Agreements (PPAs). Blockchain can also help simplify energy trading by using smart contracts, an automated process.  

What are the benefits of Granular Guarantees of Origin?

Granular Guarantees of Origin give businesses the ability to have wider visibility over their renewable spend; we take a look at some of the key benefits.  

1. Enhanced transparency in renewable energy consumption 

A Guarantee of Origin contributes to a more transparent energy market, both for energy producers and energy consumers. It does this by clearly stating where a business procures its energy from and whether the source is renewable or traditional.  

2. Improved corporate sustainability reporting 

The other key benefit of Guarantee of Origins is that it also highlights exactly how much renewable energy a business is procuring. As more stringent, mandatory reporting directives are being introduced,  Guarantees of Origin allow businesses to confirm their energy source is renewable in source. Granular Guarantees of Origin allow even more accurate sustainability reporting with timestamps 30 minutes apart.  

3. Increased demand for real-time renewable energy tracking 

As more businesses are considering their carbon footprint and the effect suppliers and partners have on their carbon footprint, demand is increasing for real-time energy tracking. With reporting as frequent as half hourly, Granular Guarantees of Origin are coming extremely close to real-time tracking.  

What are the applications of Granular Guarantees of Origin in different sectors 

Granular Guarantees of Origin impact the energy sector, but what other industries can they affect?  

1. Businesses and corporate sustainability goals 

It’s not just energy producers that Granular Guarantees of Origin have an impact on. Carbon-conscious investing is fast becoming a decision-making factor behind business partnerships and the investors and suppliers that companies choose to do business with. This is because when calculating your carbon footprint, it’s important to take into account the carbon emissions that the businesses connected to your business emit as this can also affect your overall carbon footprint. Granular Guarantees of Origin allow businesses to officially verify where their energy is coming from, helping to build a clearer picture of a potential business connection and how it might impact your business.  

2. Energy suppliers and market efficiency 

The half-hour incremental reporting of Granular Guarantees of Origin also allows the market to be more efficient in its reporting, as the reporting frequency means it can be done in close to real-time, allowing renewable energy providers and procurers to be more reactive in terms of the market.  

3. Policy implications for governments and regulators 

For Granular Guarantees of Origin to be truly successful, governments around the world need to implement regulators and authorised bosses to certify and verify the genuineness of a Guarantee of Origin.  

The consequent guaranteed certification of Granular Guarantees of Origin allow companies to view a potential business’  with confidence.  

 Certification by authorised bodies includes the Association of Issuing Bodies (AIB), the European Energy Certificate System (EECS) and Ofgem, rather than the power plant that generated it, making the verification system impartial. The consequent, impartial guaranteed certification of Granular Guarantees of Origin allows companies to view a potential business  with confidence. From an international transfer basis, government policy does not usually allow Guarantees of Origin to be transferred between regions.  

What are the challenges of Granular Guarantees of Origin?

The benefits of Granular Guarantees of Origin can be widely felt, but the method is still a relatively new initiative and comes with its own unique challenges. 

Implementation barriers and technical challenges 

Although the energy sector tends to be ahead of other sectors in terms of technical innovation, there are still some roadblocks to the process side of energy production, distribution and tracking. This is where digital ledgers come in - a secure, digital method of organising files and making them transparent to future investors, partners or suppliers. This method is crucial to Guarantees of Origin, which can benefit from automation to make the process more efficient.  

What is the potential impact on global renewable energy markets? 

Guarantees of Origin can even go as far as to track the source of renewable energy down to the specific power plant, allowing consumers to choose to support a specific type of renewable energy or even a specific facility. This accuracy could result in more collaboration between different regions from a renewable energy perspective, boosting international crossover in the future.  

As demand for real-time renewable energy tracking grows, Granular Guarantees of Origin are poised to enhance transparency, efficiency, and sustainability worldwide.