The energy transition is asking us about how we consume electricity. Concerned with this global problem, it is normal as a consumer to be interested in electricity from renewable sources.

For several years, we have seen numerous green or even 100% renewable offers flourish in the supply of electricity. However, it is difficult to understand what is really behind these offers. Indeed, the marketing of these offers, in line with energy transition objectives, makes these offers attractive.

The reality is more complex than that. Indeed, there are different shades of green. We are therefore going to try to explain to you the different ways to sell renewable energy. The main mechanism put in place to date in France is that of guarantees of origin.

What is the current situation in France?

First of all, we can start from the following observation: it is impossible to certify the origin of the electrons that reach your electrical outlet. In fact, the laws of electricity (especially the famous Kirchhoff) teach us that electrons move from point A to point B by the fastest path.

Once injected into the network, it is impossible to identify the fossil or renewable origin of electron production. It is to get around this problem and allow consumers to participate in development of renewable energies (ENR) that the GO system (guarantees of origin) was created.

It is impossible to individually certify the origin of the electrons consumed; we can certify the origin of the energy that transits on the network. The electricity supplier can thus guarantee that a quantity equivalent to the customer's consumption was produced in a renewable manner this year in France.

As we will see, it is a way of participating in the development of the renewable sector.

What is a guarantee of origin?

The guarantee of origin mechanism

As we mentioned before, it is impossible to follow the path of electrons precisely. In any event, to meet consumer needs, this physical problem had to be circumvented. The European Union has taken up the subject and has published a directive to this effect.

Guarantees of origin are simply electronic certificates that attest to the production of a quantity of MWh of renewable origin. This certificate also specifies the mode of production (wind, hydroelectric, etc.), the year and the country of production.

A novelty has emerged with regional GOs. Indeed, the finest granularity is now the region. We can thus ensure the production of local electricity and renewable energy. It is a way of supporting the development of renewable energies in a region.

To maintain consistency, the total quantity of “green” MWh sold in GOs cannot exceed the total quantity of green energy produced in France. As you will have understood, the customer who pays for this GO will not necessarily consume MWh of ENR origin.

The supplier is not even going to buy the quantity of energy in question, he is simply going to buy the certificate attesting to equivalent production. It is likely that the electricity actually consumed is of fossil origin.

To summarize, GOs ensure that each MWh consumed by the company (or individual) is offset by a renewable MWh injected into the grid.

The properties of this electronic certificate

A guarantee of origin is an annual product, it concerns the year in question. From the date of production of the “green” MWh in question, The GO existed for a year. After this period, the certificate becomes outdated.

This electronic file can only be issued once for the same quantity of energy. One kWh cannot therefore be the subject of two separate GOs.

It contains a lot of information such as:

• The production date
• The country of origin
• The power of the renewable installation
• The type of power plant (hydroelectric, wind...)
• The date the installation was put into operation...

It is the Powernext company that has the mission of ensuring a real “market” for guarantees of origin as we will see.

How do guarantees of origin work?

Powernext, the market for guarantees of origin

Since the 1^Er May 2013, Powernext is the company in France that maintains the national register of guarantees of origin. It is the only institution capable of issuing the famous certificates, it acts with a mandate issued by the Ministry. At present, this is the only way to ensure the validity of certificates.

All production installations are recorded in this register. Of course, this only applies to renewable installations.

Once a MWh is certified, the associated certificate is valid for one year and cannot be transferred. Clearly, a MWh can only be certified once. However, it is possible to transfer an original guarantee from one account to another.

Who can buy guarantees of origin?

Not all ENR productions necessarily benefit from GO. Indeed, for example, production sites in” Obligation to buy ” from EDF do not benefit from this measure.

On the other hand, the self-consumption of MWh from cogeneration or another renewable source may give rise to certification.

As we see, a guarantee of origin simply certifies the production of MWh of renewable origin. However, aren't there other ways to consume green energy?

What are the different ways to consume green energy?

Today in France, there are other ways to consume renewable energy.

Self-consumption

Installing photovoltaic panels on an installation in order to reduce the energy drawn from the network is a good alternative. We are not going to dwell on this vast subject. In fact, we devoted an entire article to it: “What is self-consumption? ”

The energy does not pass through the national network and is supplied to the site's equipment. It's hard to do better than that in terms of guaranteeing the origin of electricity.

The different forms of PPA (Power Purchase Agreement)

It is the most promoted model in recent years. The modification of the rules concerning the famous feed-in tariffs is partly responsible for this development.

Indeed, energy producers, seeing their profitability deteriorate with an exit from the obligation to purchase, preferred to turn to this solution. It is a contract for the sale of electricity by mutual agreement. In other words, the contract directly binds two parties: the customer as well as the producer.

What is the difference with the GOs? Well, with GOs, you're not buying renewable energy. You simply buy a certificate that attests to production. In the case of a PPA, the renewable energy in question is attributed to the customer balance manager.

It is a way for the producer to ensure the sustainability of his installation, and for the customer to participate concretely in the development of renewable energies.

There are also PPAs.” My site ”, that is to say, production takes place directly on the customer's site. This obviously requires a significant investment. However, this is the only way that exists today to ensure the origin of your electricity.

Between PPA and GOs, the approach seems to be the same (renewable production equivalent to customer consumption). However, the reality is quite different. Indeed, the PPA also allows the customer to hedge against the volatility of wholesale markets.

Support for the sector is also incomparable to the purchase of a GO. This can allow the development of local producers.

You will find more details in this article: What is a Green Corporate PPA?

Finally, there are various ways to participate in the financing of renewable energies in France. The fact of not being able to trace electrons physically pushes us to always innovate in this field. It is for this reason that the technologies of Blockchain are often put forward in this area. Indeed, it is a new way of certifying, with an almost zero degree of error, any type of information.

As such, we can mention Lo3 Energy or ConsenSys, which are at the origin of Transactive Grid. This exchange platform allows several users from the same pool tocollective self-consumption to manage all the energy flows generated and to certify them.

Why choose a Power Purchase Agreement for your business?

Buy directly from a renewable energy producer thanks to the green electricity supply contract!
For the buyer, the PPA allows a reduction in the risk of cost volatility, and therefore stable financial forecasts over time.
Click below for more information:

PPA solution