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Guarantee of origin.

Document origin. Assess quality.

Understand the term ↗
ENERGY GLOSSARY / ALL TERMS ↗

Green electricity and evidence

What does guarantee of origin mean?

A guarantee of origin documents the renewable origin of a quantity of electricity. Certificates are cancelled for the corresponding electricity disclosure, to prevent the same renewable characteristic being marketed more than once. The certificate alone does not assess the entire environmental quality of an electricity product.

When procuring for property portfolios, define requirements beforehand: what should procurement demonstrate, which additional criteria matter and which documents are needed internally?

THREE QUESTIONS ABOUT THE ELECTRICITY PRODUCT

  1. OriginWhich renewable characteristic is evidenced?
  2. AllocationWhich electricity volume is covered by cancelled certificates?
  3. Additional qualityWhich further characteristics are separately promised?
Check origin and additional product quality separately.

PROPERTY PRACTICE

Clarify requirements in advance.

Separate electricity origin from additional product requirements. A guarantee of origin alone demonstrates neither new generating capacity nor the climate neutrality of an entire building. Additional quality characteristics require separate assessment.

An example.

Schematic offer comparison: two offers provide green electricity. This alone does not show whether both meet the same requirements for generating installations or additional environmental impact. Compare the promised characteristics and proposed evidence.

Guarantees of origin concern allocation of a renewable characteristic. They do not demonstrate a separate physical electricity route to the building.

WHAT MATTERS

Three questions for your portfolio.

01

Which origin and quality characteristics does the offer promise?

02

For which volume and period do these commitments apply?

03

Which documents will the supplier provide for your records?

Make the distinction clear

“Green electricity” is not a complete description of product quality. Clarify whether the promised characteristics also meet your internal requirements.

Sources reviewed: 18 September 2026 · Editorial team: NeoBid

German Environment Agency · Green electricity and guarantees of origin, updated 4 May 2026

Examples and diagrams are schematic. Their application depends on your data and contract terms.

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35 terms

Markets and prices

Baseload

In electricity trading, baseload describes a standardised profile with constant power throughout the defined product period.

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Markets and prices

Capacity charge

A capacity charge prices the power demand relevant for billing, often in euros per kilowatt per year.

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Property practice

Communal electricity

Communal electricity is a common term for electricity used by shared areas and systems within a building.

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Data and metering

Energy supplier

The energy supplier sells and supplies energy under a supply contract.

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Procurement

Fixed price

A fixed price establishes a defined price for an agreed period.

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Markets and prices

Forward market and forward price curve

Products for future periods are traded on the forward market.

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Procurement

Full supply

Full supply is a model in which the supplier covers agreed energy demand and takes on key procurement and settlement tasks.

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Data and metering

Gas conversion factor

The gas conversion factor is a dimensionless factor used to convert measured gas volume from operating conditions to the specified standard conditions.

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Sustainability

Green electricity and additionality

Green electricity describes electricity products with agreed renewable origin characteristics.

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Data and metering

Gross calorific value

Gross calorific value describes a fuel’s energy content under defined conditions and includes heat recoverable when water vapour condenses.

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Green electricity and evidence

Guarantee of origin

A guarantee of origin documents the renewable origin of a quantity of electricity.

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Data and metering

kW, kWh and MWh

The kilowatt (kW) is a unit of power.

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Data and metering

Load profile

A load profile describes how energy demand is distributed over time.

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Data and metering

Market location

A market location is a place in the energy market where energy is generated or consumed.

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Markets and prices

Merit order

The merit order describes a supply ranking ordered by costs or bid prices.

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Data and metering

Meter number

The meter number identifies a specific metering device.

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Data and metering

Metering location

A metering location is the place where energy is measured.

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Data and metering

Metering operator

The metering operator is responsible for operating the metering point.

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Markets and prices

Network charges

Network charges pay for use of the electricity or gas network.

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Data and metering

Network operator

The network operator operates the local energy network and enables energy transmission or distribution within its area of responsibility.

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Markets and prices

Peakload

Peakload describes a standardised electricity trading profile covering a defined subset of hours within a product period.

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Procurement

Power purchase agreement (PPA)

A power purchase agreement is an individually negotiated electricity offtake contract.

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Procurement

Price guarantee

A price guarantee is a contractual commitment to keep specified price components stable for a defined period.

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Property practice

Property changes and vacancy

Property changes or vacancy may alter a supply point’s use, contracting party and consumption.

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Procurement

Residual electricity demand

Residual electricity demand is the electricity requirement that must be covered in addition to defined self-supply or allocated deliveries.

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Data and metering

RLM – interval demand metering

RLM refers to recording power demand at successive time intervals.

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Data and metering

SLP – standard load profile

A standard load profile is a typical consumption pattern over time.

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Procurement

Spot market and indexed procurement

Energy is traded at short notice on the spot market.

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Markets and prices

Standing charge

The standing charge is a fixed, time-based tariff component, such as an amount per month or year.

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Property practice

Supplier switching and notice periods

Switching supplier replaces the energy provider at a supply point.

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Procurement

Supply point aggregation

Aggregation combines several supply points in a single procurement process.

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Property practice

Tenant electricity

Tenant electricity describes a supply model for building occupiers, often incorporating locally generated solar electricity.

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Procurement

Tranche procurement

Tranche procurement spreads price fixing for the expected demand across partial volumes and several purchasing dates.

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Markets and prices

Unit rate

The unit rate is a price related to the amount of energy consumed, for example in cents per kilowatt-hour.

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Procurement

Volume tolerance and excess or shortfall

A volume tolerance defines a contractually agreed range around a reference volume.

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YOUR NEXT STEP

Let’s start
a conversation.

In our first meeting, we discuss your portfolio, upcoming contract deadlines and objectives. Together, we identify useful documents and next steps. You do not need a complete dataset to get started.

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