How Renewable Energy reporting rights work

The problem certificates solve

When an organisation consumes electricity from the grid, it is physically impossible to know whether the electrons it uses came from a wind farm or a coal fired generation plant, everything mixes together. Energy attribute certificates solve this problem by separating the renewable attribute of generation from the physical electricity itself, allowing that attribute to be tracked, traded, and retired as proof of renewable energy use.

How the system works

Every time a qualifying renewable facility solar, wind, geothermal, or hydro — generates electricity, it produces two things simultaneously: the physical energy delivered to the grid, and a separate reporting right representing the renewable attributes of that generation..

Each certificate carries a set of core metadata:

•       The identity and location of the generating facility

•       The date and time of generation

•       The fuel type (solar, wind, hydro, geothermal)

•       A unique identifier that prevents the same MWh being claimed more than once

Certificates can be sold independently of the physical electricity. This means a corporate in Auckland can purchase and retire certificates from a Southland wind farm, assuming both are attached to the same grid. Once retired, the certificate is permanently cancelled in the registry, it cannot be resold or reused. Only retired certificates can be used to support a renewable energy claim in Scope 2 emissions reporting.

Market-Based vs Location-Based Reporting

The GHG Protocol, the global standard for greenhouse gas accounting, recognises two approaches to reporting Scope 2 emissions from electricity consumption.

Location-Based

This method applies the average emission intensity of the electricity grid. It is straightforward but blunt: every consumer on the grid receives the same emission factor, regardless of the energy sources they actually recieved.

Market-Based

This method assigns emissions based on the specific generation sources a consumer has contracted or purchased certificates from. It is more precise because it directly ties reported emissions to purchasing decisions, incentivising procurement that genuinely supports renewable development. Where a consumer holds and retires a valid certificate, they may report the emission factor of that specific generation source rather than the grid average.

Market-based reporting is the preferred approach for organisations with sustainability commitments, RE100 memberships, or Science Based Targets. It rewards genuine action rather than averaging it away.

What is a REGO?

A Renewable Energy Guarantee of Origin (REGO) is the next-generation form of energy attribute certificate, designed to provide greater granularity and transparency than earlier instruments such as Renewable Energy Certificates (RECs).

Where legacy certificates were typically issued annually meaning a consumer could retire a certificate from generation that occurred in summer to cover winter consumption REGOs are designed for hourly attribution. Each REGO is tied to a specific asset and a specific time interval, closing the temporal gap that annual instruments fail to address.

Key Features

•       Issued per MWh of renewable electricity generated from an eligible facility

•       Carries metadata linking it to a specific asset, time period, and fuel type

•       Can be traded independently of the physical electricity

•       Must be retired before it can support a renewable energy or emissions claim

•       Designed for hourly or sub-hourly matching — not just annual reconciliation

Why REGOs matter for Generators

For renewable energy producers, REGOs represent an additional revenue stream on top of electricity sales. By registering a facility and issuing certificates, generators can monetise the renewable attributes of their output selling them to corporate buyers who need verified clean energy claims. In low-margin renewable development, this premium can be the difference between a project reaching financial close and failing to do so.

Why REGOs matter for Consumers

For electricity consumers with Scope 2 reporting obligations, REGOs are the mechanism that enables market-based reporting. Purchasing and retiring a REGO tied to a specific generation asset and time period allows an organisation to claim with integrity, that the renewable attributes of that generation have been allocated to their consumption.  They can then demonstrate this to auditors, investors, and regulators with a traceable, immutable audit trail.

Global Trends – hourly matching

Global reporting frameworks are converging on hourly matching as the credible standard for renewable energy claims. The Science Based Targets initiative (SBTi) and RE100 are both moving toward 24/7 carbon-free energy as the benchmark. Annual certificates which allow temporal mismatches between generation, and consumption are increasingly seen as insufficient for credible claims.

REGOs, particularly when managed through a platform with hourly granularity such as PATtech, are designed for this environment. They provide the temporal specificity that annual instruments cannot, the audit trail that reporting frameworks require, and the transparency that sophisticated buyers and their assurance providers now expect.

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