Understanding energy certificates such as Energy Attribute Certificates (EACs), Renewable Energy Certificates (RECs), Guarantees of Origin (GOs), and Renewable Energy Guarantees of Origin (REGOs) can be complex. However, these certificates are crucial in the global transition towards renewable energy. 

According to the International Energy Agency, renewable energy is projected to constitute over one-third of the global power supply by 2024, highlighting the increasing shift towards renewable energy sources in electricity generation​. Energy Attribute Certificates help businesses track their clean energy usage and achieve sustainability goals. This guide offers an understanding of these certificates and explores how Flexidao can help you manage them effectively.

What is an EAC, REC, GO, or REGO? Understand What Makes Them Different

What is an EAC?

Energy Attribute Certificates (EACs) is the categorical term used to denote any contractual certificate that verifies electricity generation from renewable energy sources. Different regions and countries in the world have their own type of EAC, but all EACs ultimately serve the same purpose of proving the origin of a specific unit of electricity (usually denoted in one megawatt-hour).

What is an REC?

Renewable Energy Certificates (RECs), is the term for EACs in North America. As such, an REC is a certificate of energy generation from renewable sources such as wind, solar, or hydro. These certificates confirm that the energy has been delivered to the common network of power lines. Companies use RECs to meet regulatory mandates and voluntary green marketing standards.

Exploring the Differences: EAC vs REC

In comparing EAC vs REC, it's important to note the regional differences and functional similarities between them. EACs is a categorical, generic term used for any contractual certificate that proves the source of a given energy unit. RECs is simply the North American standard for EACs. As such, there is no tangible difference between the two beyond the terminology.

What is Guarantee of Origin (GO)?

Guarantees of Origin (GOs) is the international standard for EACs in most European countries. Much like other EACs, GOs are crucial for enhancing transparency in the energy market, allowing consumers to confirm the origin of their energy and enabling providers to label their electricity as renewable.

What is Renewable Energy Guarantee of Origin (REGO)?

The Renewable Energy Guarantee of Origin (REGO) is the national standard for EACs used in the UK. REGOs are used to certify that a specific percentage of electricity is generated from renewable sources. REGOs are essential for suppliers to demonstrate the renewable content of the energy they sell and for organizations to report the source of their energy accurately. 

 How do EACs, RECs, GOs, REGOs work?

These certificates are typically issued when one megawatt-hour (MWh) of electricity is generated and fed into the grid from a renewable source of energy. They can also be sold separately from the physical electricity, allowing businesses to purchase them, in case they’re unable to directly source renewable power. By buying these certificates, businesses can:

• Demonstrate commitment to sustainability: Publicly support renewable energy development and reduce their carbon footprint.
• Meet sustainability goals: Make progress towards meeting their renewable energy targets.
• Enhance brand reputation: Appeal to environmentally conscious consumers and investors.

Why is an Energy Certificate important for compliance?

Energy certificates are important for several reasons:

• Legal Mandates: In many jurisdictions, regulations require businesses to source a certain percentage of their energy from renewable sources. Energy certificates provide verifiable proof that a company is meeting these obligations.
• Substantiating Claims: For companies making public commitments to sustainability, such as achieving net-zero emissions, energy certificates offer tangible evidence to support these claims, avoiding accusations of "greenwashing."
• Eligibility for Incentives: Some governments offer tax benefits, subsidies, or other financial incentives for using renewable energy. Energy certificates are often essential to qualify for these programs.
• Voluntary Standards: Participation in programs like RE100 or CDP often mandates the use of energy certificates to monitor and report progress toward renewable energy goals.

Additional Considerations

• Regional Variations: Specific types of energy certificates, such as EACs, RECs, GOs, and others, and their regulatory significance, differ between countries and regions.
• Reputation Management: Energy certificates also represent a proactive approach to sustainability, enhancing a company's reputation with customers, investors, and stakeholders.

How do you manage your EACs?

Managing these certificates can be tricky because there's a lot of data to handle, accuracy is crucial, and the rules for compliance vary from place to place. That's why it's important to approach it strategically:

1. Tracking and Reporting: Implement systems to track the generation, sale, and retirement of certificates. This ensures accurate reporting and compliance with regulatory requirements.
2. Market Analysis: Stay updated on market conditions for buying and selling certificates. Prices can vary based on supply and demand changes.
3. Strategic Purchasing and Sales: Develop a strategy for when to buy or sell certificates to optimize both financial and environmental outcomes.
4. Integration with Energy Procurement: Integrate your certificate management with broader energy procurement strategies to enhance sustainability goals and financial outcomes.
5. Use of Technology: Utilize platforms and technologies designed to streamline the management of certificates.

How can Flexidao help in managing these certificates?

Managing these certificates can be a hassle, but worry not—Flexidao is here to help you effectively streamline the process. Here’s how Flexidao aids your business in simplifying certificate management:

• Centralization of Information: Flexidao offers a unified platform that consolidates all certificate data, providing you with a comprehensive view of all certificates. This eliminates the complexities of managing multiple spreadsheets and databases, reducing the risk of errors and ensuring compliance.
• Automation of Data Collection: It automates the gathering of data from various sources, including power plants and certificate databases. This saves time and resources for your business, allowing you to focus on your core operations.
• Easy Integration: Flexidao’s APIs integrate seamlessly into your existing systems, facilitating the easy transfer and management of certificate data.
• Visualization Tools: It provides intuitive dashboards and reporting tools that offer detailed insights into your renewable energy use, making it easier for you to monitor progress towards sustainability goals.

Ready to simplify your certificate management and sustainability goals? Contact us now to learn more about how Flexidao can support your business! 

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