Category: Mechanics

REGO Certificates Under a PPA: Who Owns the Greenness?

Renewable Energy Guarantees of Origin (REGO) certificates determine whether you can claim the green branding. PPA contract drafting matters.

What a REGO certificate is

A Renewable Energy Guarantee of Origin (REGO) is an Ofgem-issued certificate proving 1 megawatt-hour of electricity came from a renewable source. They're tradeable separately from the underlying energy and are the foundation of the UK's market-based renewable claim system.

How a PPA generates REGOs

For every 1 MWh your PPA system generates, the SPV (or in some cases, you) is entitled to 1 REGO certificate. Whether you get to keep it or it gets sold separately depends on contract drafting.

Why REGOs matter for off-takers

Without a REGO, you can't legitimately claim renewable electricity under the market-based Scope 2 accounting method. So if you're using the PPA for ESG / SBTi / TCFD reporting, you need REGOs explicitly transferred.

Standard PPA REGO arrangements

Arrangement	Typical	Implication
Full transfer to off-taker	~70% of UK PPAs	You retire REGOs against your consumption
Retained by provider	~20%	Provider sells REGOs separately; you can't claim renewable
Split	~10%	Negotiated split — common when provider needs REGO inventory

What to negotiate

• Explicit REGO transfer clause
• Annual REGO retirement statement from provider
• Audit trail via Ofgem REGO register
• Right to verify retirement (some providers double-sell — there have been incidents)