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Guarantees of Origin: How Ukraine Strengthens the Green Energy Market and Opens New Horizons for Investment

Ukraine has taken a strategically important step towards the development of clean energy by introducing a system of guarantees of origin for electricity from renewable sources (RES). This decision not only strengthens the position of our state in the domestic energy market but also opens up unprecedented opportunities at the international level, particularly regarding the export of "green" energy and the attraction of "green" investments. Despite the colossal challenges caused by the full-scale war, Ukraine demonstrates resilience and dynamic development in the RES sector. In 2022–2023, more than 650 MW of new generation facilities were added to the energy system, which indicates the significant potential and attractiveness of the industry even in difficult conditions. "Clear Energy" LLC, as a leading player in the market, is actively participating in this process, expanding its portfolio of projects in various RES segments.

What is a Guarantee of Origin and its key advantages?

A Guarantee of Origin (GO) is an electronic document that officially confirms that a certain amount of electricity was produced from renewable sources. Each GO corresponds to 1 MWh of produced "green" electricity. This mechanism allows not only to declare but also to document the environmental friendliness of electricity, including the volume of CO₂ emission reductions. This is a critically important advantage for product manufacturers who seek to demonstrate the use of clean energy. In the modern world, where environmental responsibility and ESG standards (Environmental, Social, Governance) are becoming increasingly important for business, such guarantees turn into a powerful competitive advantage in European and world markets. Companies that purchase energy with guarantees of origin can improve their environmental reporting and reputation, which opens the way to new partnerships and investments. The new regulation is a direct response to the global need to transition to a low-carbon economy and contributes to the rapid growth of the clean technology market. Legislative changes not only stimulate new investments in "green" energy but also create opportunities for a conscious choice of consumers who seek to support environmentally responsible production.

Detailed overview of the updates: Resolution No. 227 and its impact

Analysts of the natural resources and energy practice of BDO in Ukraine have studied in detail the changes provided for by Resolution No. 227 of February 27, 2024, which updates the previous procedure approved back in 2013 (Resolution No. 771). The new provisions significantly expand the scope of the document: now guarantees of origin cover all renewable sources (solar, wind, hydro, biomass, geothermal), and not just "alternative," as it was before. This expansion is key for market diversification and covering the entire range of projects implemented by "Clear Energy," including biogas and biomass complexes (power plants). Among the key technical and regulatory updates, it is also worth highlighting: Updated terminology: New concepts have been introduced, such as:

  • "Aggregated generating block": Allows smaller installations (for example, several small solar panels or biogas plants) to be combined to issue a single GO, simplifying administration.
  • "Responsible person": Clearly defines the entity that is responsible for the correctness of the data during registration and circulation of GOs. "Cancellation of guarantee of origin": Allows a GO to be annulled (up to 18 months from the date of issue) if the energy has been used or sold, preventing double counting. This increases confidence in the system.
  • Detailed registration and accounting system (Electronic register): A centralized electronic register of guarantees of origin has been introduced. This ensures the transparency and traceability of each GO. The access rights, user functions, rules for issuing, circulating, and canceling guarantees are clearly defined. This not only simplifies the processes for RES producers, such as "Clear Energy," but also guarantees high transparency for buyers and international partners.
  • Compliance verification and environmental value: The new procedure introduces a mechanism for verifying the compliance of producers with the declared generation parameters, which ensures the reliability of the data. In addition, the "environmental value" of electricity from RES is defined—this indicator can be used in reporting on greenhouse gas emissions (for example, for the purposes of the CBAM - Carbon Border Adjustment Mechanism) and will contribute to the environmental certification of products. This opens up new opportunities for "Clear Energy" and its partners to demonstrate their contribution to decarbonization.
  • International recognition and export prospects: The document pays special attention to the international recognition of guarantees of origin. This is critically important for Ukraine, as it opens up new prospects for the export of "green" electricity and its further integration into the European energy space. Companies like "Clear Energy" will be able to use this tool to enter international markets, confirming the "green" origin of their electricity.

"Clear Energy": On the way to a clean and sustainable future for Ukraine

According to BDO's assessment, these innovations are an important step towards deeper European integration and strengthening Ukraine's energy independence. They clearly demonstrate the country's commitment to international obligations in the field of climate and sustainable energy. For companies like "Clear Energy" LLC, the updated regulatory framework provides a powerful and effective mechanism for confirming the origin of electricity produced at our biogas, biomass, and other RES facilities. This not only increases the investment attractiveness of the industry but also creates new opportunities for doing business, expanding partnerships, and attracting investments in the development of clean energy. Thanks to such initiatives and the active participation of market leaders, we are moving towards a more sustainable, energy-independent, and clean future for Ukraine. "Clear Energy" LLC constantly invests in new technologies and expands its presence in the RES market, understanding the importance of transparency and compliance with international standards. The introduction of guarantees of origin will allow us to demonstrate our contribution to energy decarbonization even more effectively and provide our customers and partners with complete confidence in the "green" status of their electricity. Today, the company's existing capacity allows it to produce over 100 million kWh of "green" energy annually.