Exploring Renewable Energy
Guarantees of Origin (REGO)

They have also played a crucial role in supporting public sector bodies in progressing towards their net zero ambitions.  

At West Mercia Energy, we are committed helping our public sector customers to understand this crucial aspect of renewable energy accreditation. In this article, we delve into what REGOs are, how the scheme is accredited, and why we have witnessed a notable increase in REGO costs over the past few years.

What are REGOs?

REGOs are certificates issued in the United Kingdom to guarantee the renewable origin of electricity. These certificates provide consumers with transparency and confidence that the electricity they are purchasing is generated from renewable sources, such as wind, solar, hydro, and biomass. REGOs play a pivotal role in verifying and tracking the renewable attributes of electricity, promoting the growth of the renewable energy sector.

Accrediting the Scheme

The accreditation process for the REGO scheme is rigorous and ensures that only genuine renewable energy sources are eligible for certification. Here's a simplified breakdown of the accreditation process:

1. Generation Verification: Energy generators must prove that their facilities use eligible renewable energy sources. This verification includes detailed information about the energy source, capacity, and location.
2. Metering and Reporting: Renewable energy generators install meters to measure the energy produced. They then report this data to Ofgem, the regulator of the electricity and gas markets in Great Britain.
3. REGO Issuance: Once Ofgem validates the data and confirms its alignment with renewable energy standards, they issue REGOs for the corresponding amount of electricity generated.
4. Transparency: All REGOs and associated information are made publicly available, enabling consumers and stakeholders to track the renewable energy's origin.

Rising REGO Costs

Over the last few years, we have observed a substantial increase in REGO costs. Several factors contribute to this upward trend:

1. Growing Demand for Renewable Energy: As society becomes increasingly aware of the need for sustainable energy, the demand for renewable energy sources has surged. This heightened demand has driven up the cost of REGOs as more renewable energy generators enter the market. The supply/demand dilemma has been further fuelled by Ofgem banning the use of the European equivalent to REGOs, Guarantees of Origins (GoOs).
2. Investment in Renewable Infrastructure: To meet the growing demand for renewable energy, significant investments are required to build and maintain renewable energy infrastructure. These costs are often reflected in REGO pricing.
3. Government Policy and Incentives: Government policies and incentives to promote renewable energy have encouraged the development of renewable energy projects. However, these policies can also impact the pricing of REGOs.
4. Volatility in Energy Markets: The energy market is subject to fluctuations, and REGO prices can be influenced by changes in market dynamics, including fluctuations in fossil fuel prices.

In conclusion, Renewable Energy Guarantees of Origin (REGOs) are essential in verifying the renewable attributes of electricity in the UK. The accreditation process ensures the credibility of these certificates, offering consumers confidence in their renewable energy purchases. While REGO costs have seen a notable increase over recent years, this trend reflects the growing demand for and investment in renewable energy sources. As we continue to prioritise sustainability, REGOs will remain a crucial tool in our journey towards a cleaner and more sustainable energy future.

At West Mercia Energy, we are dedicated to promoting and facilitating the adoption of renewable energy across the public sector and we have a variety of renewable products available through our framework suppliers.

If you have any questions or need assistance with your renewable energy initiatives, please don't hesitate to contact us.