What are guarantees of origin (HKN)?
Guarantees of origin (HKN) are electronically issued certificates that document the origin and method of production of electrical energy. These certificates are specifically designed for electricity from renewable energy sources and offer a reliable way to prove that the energy is environmentally friendly. An HKN is issued for every megawatt hour (MWh) of electricity generated from renewable sources and serves as proof that the corresponding amount of energy actually comes from sustainable resources.
Why are guarantees of origin important?
Guarantees of origin play a crucial role in the energy market for several reasons:
1. Transparency and Credibility
HKNs provide transparency by allowing companies and consumers to verify the origin of the energy they use. In doing so, they strengthen trust in sustainability claims and support the transition to renewable energy.
2. Supporting the energy transition
By creating a trading market for green certificates, HKNs are promoting investments in renewable energy. Producers can generate additional income by selling HKNs, which increases the economic attractiveness of renewable energy generation projects.
3. Compliance with legal requirements
In many countries, including Germany, energy suppliers must obtain a certain proportion of their electricity from renewable sources. HKNs enable them to prove these requirements and meet their legal obligations.
4. Sustainability goals for companies
Companies that want to improve their carbon footprint can use HKNs to report all their energy consumption as renewable. This is an essential part of corporate social responsibility (CSR) and environmental strategies.
How do guarantees of origin work?
The process of issuing and trading certificates of origin is partly bureaucratic, but very clearly structured:
1. Production of energy
A producer, such as a wind farm or a solar plant, produces electricity from renewable sources.
2nd certification
This production is reported to the competent national register, which carries out the certification and issues the HKNs. In Germany, the Federal Environment Agency (UBA) takes on this task and ensures the proper issuance and administration of HKNs. The neutrality of the authority creates maximum credibility and trust.
3. Sales and trade
The HKNs are sold on the market. Companies that do not have direct access to renewable energy sources can purchase these certificates to declare their energy consumption as green.
4. Depreciation
After using an HKN, i.e. when the corresponding electricity has been declared renewable, the certificate is invalidated and cannot be reused.
5. Reporting
Companies and energy suppliers use HKNs to report on their environmental footprint in order to ensure transparency to their stakeholders.
Costs of guarantees of origin
The costs of guarantees of origin are variable and are influenced by several factors:
Supply and demand: The availability of HKNs may vary by region and energy source, which affects prices. High demand for green energy often leads to higher costs for HKNs.
Type of energy source: HKNs for certain energy sources, such as solar energy, can be more expensive than for wind power, as demand is often higher.
Administrative costs: The administration and operation of the HKN systems involves costs, which are usually covered by the fees for issuing and trading the certificates.
Market dynamics: Changes in the energy market and regulatory adjustments can also influence pricing.
Who manages the guarantees of origin?
In Germany, as explained above, the Federal Environment Agency (UBA) is the competent authority for managing guarantees of origin. The UBA ensures that HKNs are properly managed and comply with legal standards. It monitors the issuance, transfer and validation of HKNs to ensure the integrity of the system.
Integration into corporate strategies
HKNs offer companies an effective way to achieve sustainability goals and improve their CO2 balance. By buying HKNs, companies can mark all their energy consumption as green, even if they are physically unable to purchase renewable energy directly.
Strategic benefits of HKNs
Image maintenance: Companies can publicly document their commitment to sustainability and thus strengthen their brand image.
Compliance: HKNs help to comply with legal and internal environmental goals.
Customer loyalty: Consumers value sustainable companies, and HKNs are a means of demonstrating environmental responsibility.
Сonclusion
Guarantees of origin are a crucial instrument for promoting renewable energy and supporting the energy transition. They provide transparency, strengthen consumer trust and help companies achieve their sustainability goals. By using HKNs, companies can not only demonstrate their environmental responsibility, but also actively contribute to reducing global greenhouse gas emissions. The role of HKNs in the modern energy market is essential to accelerate the transition to clean energy while offering economic benefits.
