All of Vaasan Sähkö’s electricity products are emission-free, produced using either nuclear power or renewable energy. Their origin is verified with guarantees of origin (GO).
When distributed, it is not possible to physically separate electricity by production method; all electricity in the grid is a mix of various production methods.
This is why the guarantees of origin certificate system was created, allowing the origin of electricity consumed by customers to be verified as coming from a specific production method. In other words, we as an electricity vendor have to prove, for example, that we have acquired the same amount of wind energy that our Wind Power customers have consumed.
Certifying the production method
Guarantees of origin are certificates issued for electricity produced without emissions, using, for example, renewable energy sources or nuclear power.
They are valid for 12 months from the date of production. In Finland, the guarantees of origin registry is managed by Finextra Oy, owned by Fingrid, which oversees the registration of all production plants eligible for GOs.
For example, when a wind power plant produces one megawatt-hour of electricity, a certificate of origin is created for one megawatt-hour of wind power. The owner of the certificate can sell or use the same amount of electricity as wind power.
A GO is essentially a type of financial instrument created when electricity is generated using a renewable production method or nuclear power. It is granted to the owner of the plant registered in the guarantees of origin system. If the plant owner does not sell electricity directly to end users, the GO can be sold to an electricity seller requiring it.
Based on legislation
The use of guarantees of origin is based on the Guarantees of Origin Act (1050/2021) (English translation) and the Government Decree (1081/2021) on Guarantees of Origin for Energy (English translation). The Guarantees of Origin Act implements the EU RED II directive, which aims to promote the use of energy from renewable sources and requires all EU member states to establish a system for GOs.
An electricity vendor who markets or uses renewable energy or nuclear power must verify the origin of the electricity. Similarly, electricity producers as well as businesses that communicate the origin of the electricity that they consume must verify the share of renewable energy and nuclear power. Verification is carried out by canceling, or redeeming, guarantees of origin equivalent to the amount of electricity sold as renewable or nuclear power. In Finland, compliance with the law is overseen by the Energy Authority.