What is a Guarantee of Origin?
A Guarantee of Origin (GoO) for gas certifies that a portion of the energy has been sourced from renewable energy resources. According to Section 117.1, Subsection 1 of the Energy Law, GoOs serve this specific purpose. Section 117.3, Subsection 1 further specifies that the transmission system operator (TSO) issues and manages these GoOs, under the European Energy Certificate System or another European documentation scheme. This scheme governs the issuance and cancellation of GoOs for gas, and the TSO also provides the necessary requirements and documentation for obtaining a GoO on its website. Additionally, the transmission and storage system operator recognises GoOs for gas issued in other EU member states.
Under Latvian law, operators must manage and request the necessary information from producers to issue the corresponding GoO. If a biomethane producer fails to provide the required information, the TSO can refuse to issue a GoO.
Challenges
One of the reasons why GoO is so relevant is the issue of double-counting biomethane for renewable energy purposes, both in the producing country and in the country to which the company intends to export it. So, do we have any regulations in Latvia regarding this matter, and is GoO sufficient to avoid double-counting biomethane?
First we need to note that Latvia has only recently begun producing biomethane, so the Central Statistical Bureau, responsible for counting energy resources, is still refining its procedures for gathering and registering data on produced and exported biogas. Currently, there are no specific Latvian regulations for counting produced and exported biogas. Consequently, the relevant EU regulation applies directly, stipulating that only renewable energy consumed can be counted in the relevant member state, excluding exports regardless of whether they have a GoO.
Second, authorities agree that the safest trackable mechanism is the GoO, which simplifies tracking and counting. So, there is no doubt that GoO is a safe mechanism to ensure biomethane is counted. While the competent authorities also receive precise data from transactions without GoOs under voluntary schemes, ensuring that units of energy don’t have simultaneous parallel flows (under both a voluntary sustainability certificate and a GoO) remains a matter of practice and procedure.
Looking to the future
The GoO scheme is likely to improve as more EU member states establish local authorities to ensure a smooth and aligned process. This will enhance the efficiency and reliability of GoOs, facilitating better tracking and management of renewable energy sources across Europe.
