Amongst all the efforts that are lined up in 2023, Georgia seems to have rolled the ball by becoming the first country to use a new electronic registry for renewable energy guarantee of origin (GO) certificates from January 1, 2023
The conversation around clean and renewable energy is now louder than ever. As countries strive towards achieving energy security in 2023 after a tumultuous 2022, the future of renewable energy looks promising in the new year. Right from governmental support across the globe to technological advancement, all factors are aimed at driving the growth of clean energy.
Amongst all the efforts that are lined up in 2023, Georgia seems to have rolled the ball by becoming the first country to use a new electronic registry for renewable energy guarantee of origin (GO) certificates from January 1, 2023. According to Grexel, the registry developer and a part of the European Energy Exchange, it is believed that the move is to extend the guarantee of origin market beyond the European Union.
The Energy Community, who is responsible for the project is certain that they will have more countries signing the contract before the July 2023 deadline. However, the certificates are compatible only with the European Energy Certificate System (EECS). Additionally, the certificates issued to non-EU countries are not recognized by European regulation at the moment.
What is the Energy Community? What is the electronic registry project?
The Energy Community, also referred to as the Energy Community of South East Europe, is an international body formed in October 2005 in Greece, which came into action in July 2006. The objective of this body is to extend the EU internal energy market rules and principles to countries in South East Europe, the Black Sea region and beyond on the basis of a legally binding framework. It consists of the European Union and non-EU countries.
In January 2022, the Energy Community launched a project aimed to create an electronic system for guarantees of origin in Albania, two entities in Bosnia and Herzegovina, Georgia, Kosovo, North Macedonia, Moldova, Montenegro and Ukraine. A total of nine electronic registries for guarantees of origin were launched.
Guarantees of Origin are tradable certificates associated with renewable energy production. It proves to the final consumer the specific quantity of electricity that was produced from renewable energy sources. They are also vital for enabling corporate Power Purchase Agreements. The goal of this region project is to manage the issuance, transfer and cancellations of guarantees of origin and check if they align with EU rules and principles – all through an electronic system. The Contracting Party shall have their individual national register and have the liberty to trade guarantees of origin regionally.
The silver lining behind the Russia-Ukraine geopolitical conflict:
Currently, Europe is suffering from a heavy energy crisis and soaring energy prices. The ongoing geopolitical tension is majorly responsible for it. It is high time the European Union, and its neighbour resort to renewable energy and use it to its full capacity. Many believe the crisis will eventually erode Europe’s competitive edge in 2023.
Undoubtedly 2022 has been a difficult year for many, however, International Energy Agency (IEA) published two reports in December 2022 indicating a rapid shift in clean energy caused by the tension between two nations. The IEA predicts an unprecedented momentum behind renewable energy. With a growth projection of 30%, the world will install as much solar and wind power in the next 5 years, as it did in the last 20 years.
In late December 2022, the European Commission approved the German government’s 28 billion euro support scheme for renewable energy. Under this scheme, the government aims to expand solar and wind energy. The scheme will run till 2026 and aims to fulfil Germany’s goal of producing 80% of its electricity from renewable sources by 2030.