Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to the electricity consumers in the UK about where their electricity comes from. The primary use of REGOs in the UK is for the Fuel Mix Disclosure statements by energy suppliers. Larger companies use REGOs in their ESG reporting to prove the amount of renewable energy they use.
Who can obtain REGO certificates?
1 REGO certificate can be assigned for every 1MWh of energy produced from any renewable energy source. To claim REGO certificates, you need to apply via Ofgem’s Renewables & CHP portal and register your site as an accredited generating station. You also have to submit all generation data within the required timescales to receive your REGOs. This can be done monthly or annually depending on who you are selling your REGOs to.
REGOs must be claimed by the generating station. REGO certificates can be claimed, transferred, redeemed and retired on the Renewables and CHP Register. When a REGO certificate is ‘used’, its status changes to ‘redeemed’ or ‘retired’.
How can you get paid for REGOs?
Once issued, the certificates can be transferred to other Renewables and CHP register account holders – energy suppliers, independent companies or REGO traders.
REGOs can be sold as part of a power purchase agreement (PPA) or in a separate agreement. The best option depends on various factors. REGOs need to be transferred to the buyer via the Renewables and CHP register.
Access Ofgem’s guidance on using the register, submitting your data and transferring REGOs.
How much do you get paid for REGOs?
This is determined by how much the supplier offered you upon signing your PPA or the REGO Trading Master Agreement (if you’ve traded REGOs independently from your export power).
Renewable Exchange produces a REGO Index update where you can read more about the trends observed in REGO values traded on the platform.
When should you transfer REGOs?
REGOs are typically requested from generators by the end of April each year.
Energy suppliers have to declare what their electricity supply is made up of in the Fuel Mix Disclosure statement. To do that, they need to have all the REGOs they purchased in their account by the 1st July.
Ideally, all REGOs within the April-March period should be transferred to the suppliers by the end of following April (e.g. for the period 1st April 2021-30th March 2022, you should transfer certificates to the offtaker by midday on 30th April 2022).
This ensures suppliers have all their purchased REGOs in their account for Fuel Mix Disclosure submission by 1st July.
What happens with old REGOs?
If you miss the deadline for claiming your REGOs or transferring them to your/supplier’s account in the Ofgem’s portal, you will not get paid. It is therefore crucial that you complete the claim and transfer process within the required timescales.
If you have any more questions about maximising REGO certificates value, transferring REGOs or selling REGOs, get in touch with our team of renewable power and certificate trading experts at [email protected]
