Guarantee of origin certifies that energy purchased is renewable
The Government has submitted the Act on the guarantee of origin of energy to the President of the Republic for approval. The Act will make it easier for customers to influence the origin of the energy they are buying through a reliable system. With the guarantee of origin, consumers can trust that the energy marketed and sold to them as renewable is in fact produced from renewable energy sources. The Act will enter into force on 3 December 2021.
Guarantees of origin under the new Act can be applied for energy produced after the Act has entered into force. However, guarantees of origin will be granted for electricity produced this year in accordance with the repealed Act.
The transitional provisions of the Act will ensure that operators and register holders will have sufficient time to undertake measures required by the implementation of the Act. For example, separate provisions will be issued on the new obligations on certification of guarantees of origin (from 1 July 2022) and the time limits for the register holders to introduce the register of guarantees of origin (1 April 2022).
The Act broadens the legislation on guarantees of origin to include gas and hydrogen as well as heating and cooling. In addition, electricity produced from nuclear energy along with waste heat and cold will be subject to the Act.
Until now, a guarantee of origin has been required of vendors of electricity who sell or market it as renewable. In future, this obligation to certify the origin will also apply to renewable gas, hydrogen, heating and cooling, electricity produced with nuclear power, and waste heat and cold. A guarantee of origin will not be required if the energy is not sold or marketed as renewable.
There is no obligation to certify the origin of energy if there is no uncertainty as to its origin. This is the case, for example, when a shopping centre uses the electricity generated by solar panels on its roof.
As electricity produced with nuclear power as well as waste heat and cold are interesting to consumers due to their low emissions, there was a need to provide guarantees of origin on these forms of energy too.
In addition to vendors of energy, the regulation also applies to energy producers and users, with certain exceptions. For example, a company using renewable electricity in its production could state so in its marketing materials as long as the source of renewable energy has been certified with a guarantee of origin.
Three register holders grant guarantees of origin. The main grid owner Fingrid Oyj, which is the current register holder for electricity, will be responsible for the register of guarantee of origin for electricity. The gas and hydrogen register will fall under the remit of gas transmission network owner Gasgrid Finland Oy, while the Energy Authority will be in charge of the register for heating and cooling. The Authority will also monitor compliance with the Act.
The Act will implement the provisions of the revised Renewable Energy Directive (RED II) on guarantees of origin and the provisions on disclosure of origin of electricity of the Internal Market in Electricity Directive.
Inkeri Lilleberg, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 50 472 0706
Outi Vilén, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 50 475 7725