Guarantees of Origin
Landsnet has been issuing Guarantees of Origin of electricity (GOs) since 2012. The certificates serve as confirmation that a certain quantity of electricity is generated from renewable energy sources, e.g. hydropower or geothermal power.
We issued just over six million GOs in 2015, down from 10 million in the preceding year. This drop was primarily owing to price reductions in GO markets.
Landsnet is an active participant in the Association of Issuing Bodies (AIB), an enabler of European GO schemes. In 2015, AIB carried out an extensive review of Landsnet’s processes and procedures relating to the issuance of GOs. The review’s results were presented at AIB’s annual general meeting in the autumn of 2015 and were approved without any objections.
The year saw considerable discussion about the nature and scope of GOs in Iceland. Landsnet welcomes this discussion and points out that the procedures in question were introduced partly to increase the market value and competitiveness of electricity generated from renewable energy sources. Under the GO rules that took effect in Iceland in 2012, GOs are not included in the sale of the electricity, i.e. they can be sold irrespective of the sale of the electricity. This means that all electricity consumers have equal access to renewable energy sources regardless of their location in the European electricity system. Generators in Iceland can either deregister GOs delivered to consumers in Iceland or sell them to buyers in the European Economic Area.