Renewable Energy Guarantees of Origin (REGOs) are certificates issued in the United Kingdom to prove that electricity has been generated from renewable energy sources.
UK REGOs certify that one megawatt-hour (MWh) of electricity has been generated from renewable sources.
Tracking
UK REGOs allow for accurate tracking and claiming of renewable energy use.
Revenue Stream
UK REGOs provide a separate revenue stream to renewable energy producers.
Promoting Growth
UK REGOs play an important role in promoting renewable energy growth and driving demand for renewable projects.
REGO Creation and Use Process
Renewable Energy Generation
→
REGO Issuance
→
Tracking and Trading
→
Revenue for Producers
Renewable Energy Sources
Wind
Solar
Hydro
Geothermal
Bio (Biogas/Biomass)
Nuclear
How UK REGOs Work
Generation
When renewable electricity is produced and fed into the grid, UK REGOs are created to represent that generation.
Purchase
Energy consumers can buy these UK REGOs to support clean energy and meet sustainability targets.
Retirement
Once purchased, UK REGOs are retired, ensuring they are not used more than once and demonstrating the buyer's commitment to renewable energy.
Compliance Market
Driven by regulations, utilities and other entities are required by law to obtain a certain amount of their electricity from renewable sources. These rules, known as Renewable Portfolio Standards (RPS), force companies to participate in the REC market to meet their obligations.
Voluntary Market
Companies, institutions, and individuals purchase RECs to meet their own environmental goals. There is no legal requirement here—buyers want to improve their environmental reputation, meet sustainability targets, or offset their carbon emissions.
Certification and Tracking Systems managed by Ofgem
The Renewable Energy Guarantees of Origin (REGO) scheme is regulated and administered by Ofgem, the Office of Gas and Electricity Markets. Ofgem's role is to oversee the proper implementation, compliance, and management of the scheme to ensure that it meets its objective of increasing transparency around renewable energy production and consumption in the UK.
Importance of REGOs
Key Benefits
Enhanced Transparency: Provides consumers with clear information on the renewable share of their electricity, fostering informed choices.
Support for Renewable Generation: Encourages renewable energy production by certifying and verifying renewable energy contributions.
Regulatory Compliance: Assists suppliers in meeting their environmental and fuel mix reporting obligations.
Market Credibility: Builds trust among consumers by offering verifiable proof of renewable sourcing.
Alignment with Climate Goals: Contributes to national and international efforts to increase the share of renewable energy in the grid.
FAQ
Scheme Coverage: Great Britain and Northern Ireland
The REGO scheme operates across both Great Britain and Northern Ireland, encompassing renewable energy generation from a variety of sources such as wind, solar, hydro, and biomass. This broad coverage enables the scheme to represent renewable energy output from a significant portion of the UK's renewable capacity, allowing for an inclusive representation in energy tracking and reporting.
How Suppliers Disclose Renewable Energy Percentages
Energy suppliers use REGOs to report the composition of their fuel mix. By accounting for the number of REGOs held, suppliers can accurately disclose the percentage of renewable energy in their supply portfolio. This is communicated to consumers through Fuel Mix Disclosure statements, which are issued annually and indicate the proportion of renewable, fossil, and other energy types in the supplier’s overall mix. This ensures that customers can make informed decisions based on the environmental impact of their energy consumption.
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