A Renewable Energy Guarantee of Origin certificate (REGO certificate) is a critical tool for promoting transparency in renewable energy consumption. A certificate is issued for every megawatt-hour (MWh) of renewable electricity generated. They certify that the energy was sourced from sustainable sources such as wind, solar, hydro, or biomass.
How Do REGO Certificates Work?
REGO certificates are issued by an authorised body and awarded to renewable energy producers. In the UK, it is Ofgem. For every unit of electricity generated from renewable sources, a corresponding REGO certificate is awarded. These certificates are then used by suppliers to demonstrate the proportion of their energy mix that comes from renewable energy.
For example, when you switch to a green energy tariff, your supplier uses REGO certificates to back up their claim of offering renewable electricity. While the actual power flowing into your business might come from a mix of sources on the national grid, the REGO certificate guarantees that an equivalent amount of renewable energy has been generated on your behalf. You can ask your supplier to see the associated REGO certificates for your energy contract to prove its authenticity.
Benefits of REGO Certificates
REGOs allow for the trading of renewable energy credits separately from physical electricity. This means that even if a supplier cannot directly provide renewable energy to your location, they can still support green energy production elsewhere by purchasing REGO certificates.
Additionally, for businesses aiming to reduce their carbon footprint or achieve sustainability targets, REGO certificates offer a simple and transparent way to verify renewable energy consumption. You can purchase them as a credit to offset non-renewable consumption.
Limitations of REGOs
Because certificates are separate from actual energy generation, it is possible that the scheme can be manipulated by suppliers to make deals look renewable when they aren’t. It is advisable to work with an independent expert such as Procure Smart to source truly renewable energy contracts.
In conclusion, REGO certificates play a vital role in driving the demand for renewable energy, empowering consumers and businesses to make informed choices that support the low carbon transition. By offering clear and verifiable claims, they help build trust in the renewable energy market.
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