Certificates of origin for energy – renewable sources

A certificate of origin for energy is a document confirming that a specified amount of electricity has been generated from renewable energy sources. In Poland, the authority responsible for issuing these certificates is the President of the Energy Regulatory Office (URE). Each certificate is transferred by URE to the Certificate of Origin Register maintained by the Polish Power Exchange (TGE). Certificates of origin are tradable and constitute a commodity on the exchange, meaning they can be traded on the energy market. This allows renewable energy producers to obtain additional income from selling these certificates.

Obtaining a certificate of origin for energy brings a range of benefits for both producers and consumers of energy:

• financial support for renewable energy producers – selling certificates of origin is an additional source of income for producers of energy from renewable sources, encouraging investment in such technologies,
• compliance with legal obligations – energy companies are required to obtain and present for redemption a specified number of certificates, aimed at increasing the share of renewable energy in the national energy mix,
• transparency for consumers – certificates of origin allow end consumers to confirm that the energy they purchased is backed by energy produced from renewable sources, which is important for companies and individuals concerned with an environmentally friendly image,
• development of the green energy market – trading certificates of origin on the energy exchange contributes to the development of the renewable energy market, promoting competition and innovation in the energy sector.

In Poland, matters related to certificates of origin for energy are regulated by the following legal acts:

At the European level, the key legal act is Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (known as the RED II directive), which establishes the legal framework for promoting renewable energy in EU member states.

Internationally, systems for certificates of origin for energy are widely used in European Union countries and many other nations worldwide. In Europe, so-called Guarantees of Origin (GO or GoO) operate, serving as certificates confirming that a specific amount of energy has been generated from renewable sources. National GO registers are maintained by institutions designated by member states, such as regulatory bodies or network operators.

According to Article 19 of Directive (EU) 2018/2001 of 11 December 2018 on the promotion of the use of energy from renewable sources, member states are obliged to mutually recognize guarantees of origin issued by other EU countries. This means that guarantees of origin for renewable energy produced in Poland must be recognized in other EU member states. This approach fosters the harmonization of the renewable energy market in Europe, enabling cross-border trading of certificates and supporting the growth of green energy across the continent.

Despite the benefits offered by the system of certificates of origin for energy, it also has certain drawbacks:

• price volatility of certificates

The prices of certificates of origin for energy are shaped by market mechanisms, which can lead to significant fluctuations. Such volatility makes financial planning difficult for renewable energy producers and may discourage potential investors from engaging in renewable energy projects.

• risk of oversupply of certificates

When an excess of certificates of origin appears on the market, their value can drop significantly. This has occurred in the past, leading to reduced support for renewable energy producers and undermining the system’s effectiveness.

• limitations for new investors

The green certificate system is mainly available to renewable energy installations that began producing energy before the 2015 amendment to the law. New producers are covered by the auction system, which may be less favorable and create a barrier to entry for new investors.

One of the main issues of the certificate of origin system is the lack of a direct link between the purchase of a certificate and the actual consumption of green energy by the consumer, which can lead to greenwashing and undermine trust in the system. Additionally, price volatility on the certificate market makes financial planning difficult for renewable energy producers and may discourage potential investors. It is also worth noting that some “green” energy offers are based solely on the purchase of guarantees of origin, without real support for new renewable energy investments, raising doubts about their actual impact on the sector’s development.

To improve the system of certificates of origin for electricity from renewable energy sources (RES), several aspects should be changed.

First, simplifying the administrative procedures for obtaining and redeeming certificates of origin could encourage more producers to use this system.

Second, increasing transparency and accessibility of information on current rates and forecasts for green and blue certificates would help producers make informed investment decisions.

Finally, introducing mechanisms to flexibly adjust the level of the obligation to redeem certificates of origin to changing market conditions could ensure a better balance between supply and demand for certificates, which would likely contribute to greater stability in the renewable energy market.

In the coming years, the importance of certificates of origin for energy in promoting renewable energy sources is expected to continue to grow. In the European Union, there is increasing interest in trading guarantees of origin and a rise in their prices, which underlines their role in promoting and using renewable energy. At the same time, regulatory changes, such as those introduced in Poland in December 2024, modify the rules for redeeming certificates of origin and fees related to RES, which may affect the strategies of energy companies. Additionally, growing environmental awareness among consumers and companies leads to increased demand for renewable energy and contributes to the further development of the certificate of origin system.

In conclusion, the system of certificates of origin for energy plays a key role in promoting renewable energy sources and supporting the energy transition. However, to make it more effective and responsive to contemporary challenges, it is necessary to continuously monitor its functioning and implement necessary modifications and improvements. Only in this way will it be possible to ensure stable and predictable support for RES producers and achieve goals related to sustainable development and environmental protection.