ENTSO-E believes that evolutions in the current Guarantee of Origin (GO) mechanism are needed to ensure an effective contribution to a fully decarbonised electricity system, in line with Europe’s ambitions to speed up Renewable Energy Source (RES) development to reach 2050 climate neutrality.

The current system does not provide sufficient incentives for the development of RES and the consumption of green electricity at the right time and in the right geographical location. Therefore, ENTSO-E sees two major evolutions:

1. The introduction of temporal matching. By shifting the time window for matching production and consumption of green electricity from a yearly basis to hourly or 15-minute basis, we can achieve a 24/7 GO system, thus reflecting the real value of producing and consuming green electricity dynamically at each moment in time.
2. The consideration of the available capacity between countries. ENTSO-E advocates for the introduction of market boundaries and, therefore, locational-based pricing in the GO system. In addition to consuming green electricity at the right time, this would introduce an incentive for the development, production and consumption of RES at the efficient geographical location.

READ THE POSITION PAPER HERE