Georgia already generates a large share of its electricity from renewable sources, particularly hydropower. But renewable generation on the national grid does not automatically allow an individual company to demonstrate that the electricity associated with its consumption came from renewable sources.

That is the role of Guarantees of Origin, or GOs — electronic certificates that track the renewable attribute of electricity separately from the physical electricity flowing through the grid.

Georgia introduced its electronic GO registry in 2023, with the Georgian State Electrosystem (GSE) acting as the designated issuing body. The system covers the issuance, transfer and cancellation of certificates and provides a framework for tracking renewable-electricity attributes.

renewables.GE spoke with Onise Chichinadze, who works on balancing and ancillary services markets and Guarantees of Origin at GSE, about how the system operates, where demand may come from, and why closer integration with the European framework could become increasingly important for Georgia’s renewable-energy market.

How Guarantees of Origin Work in Georgia

renewables.GE: For readers who may be unfamiliar with the concept, how does Georgia’s Guarantees of Origin system work in practice, and what exactly does a GO certify?

Onise Chichinadze: A Guarantee of Origin is an electronic certificate that provides information about the origin of one megawatt-hour of electricity.

In the case of renewable electricity, it allows a consumer to verify that a corresponding amount of electricity was generated from a renewable source.

It is important to distinguish the physical electricity from the certificate itself. Electricity generated in the power system is physically mixed, so it is not possible to say that a particular consumer is receiving electrons from a specific hydropower plant.

The GO provides the contractual and accounting mechanism through which the renewable attribute of that electricity can be tracked.

In Georgia, GSE is the designated issuing body. The electronic GO registry was introduced in 2023 through the GREXEL platform. The system covers the issuance, transfer and cancellation of certificates and provides the basis for tracking renewable attributes associated with electricity generation.

renewables.GE: GSE has been operating Georgia’s electronic GO registry since 2023. How has the system developed since launch, and what level of participation are you seeing today from renewable generators and consumers?

Onise Chichinadze: The system has developed considerably since its launch.

When GSE started issuing certificates in 2023, the system already included renewable generators and market participants, and the number of registered participants has continued to increase.

GSE reported 37 power plants and one supplier registered shortly after the launch. More recently, GSE has stated that almost all renewable-energy producers operating in Georgia are registered in the electronic system.

The next stage is not simply increasing the number of registered generators. The more important development is increasing activity within the system — particularly transfers and cancellations — because this is what turns a registry into an actual market.

We are also seeing increasing interest from companies that want to understand how renewable-electricity attributes can be used for sustainability reporting, energy procurement and international business requirements.

renewables.GE: Georgia already produces a large share of its electricity from renewable sources, particularly hydropower. In that context, why is a separate certification system still important?

Onise Chichinadze: The fact that Georgia produces a significant amount of renewable electricity does not automatically mean that every consumer can make a verifiable claim that its electricity consumption is renewable.

This is exactly where Guarantees of Origin become important.

The GO system creates a transparent mechanism for attributing the renewable characteristic of electricity to a specific consumer. It also prevents the same renewable attribute from being claimed multiple times.

For Georgia, this is particularly relevant because our electricity system has a very high share of hydropower. A functioning GO system can transform that renewable characteristic from simply being a feature of the electricity system into a traceable environmental attribute with economic value.

In other words, Georgia already has the renewable resource. The GO system creates the infrastructure through which the renewable attribute can be identified, transferred and ultimately used.

From Registry to Real Market

renewables.GE: Who is currently creating demand for Guarantees of Origin in Georgia?

Onise Chichinadze: The Georgian market is still developing, so demand is not yet comparable with mature European GO markets.

However, I would expect demand to increasingly come from several groups: international companies operating in Georgia, companies with sustainability or ESG commitments, exporters supplying European markets, large electricity consumers, suppliers and companies participating in international supply chains.

Another important source of future demand could be companies that have voluntary renewable-electricity procurement targets or need reliable evidence for sustainability reporting.

The important point is that demand does not necessarily have to come only from traditional electricity-market participants. GO demand is increasingly connected to corporate sustainability strategies and international reporting requirements.

renewables.GE: What is the commercial value of a GO for a renewable-energy producer?

Onise Chichinadze: A GO represents an additional attribute of renewable electricity and therefore has the potential to create an additional revenue stream for renewable generators.

However, I would describe the Georgian market as being at an early stage. It would be premature to assume that GOs currently represent a large or predictable source of additional income for every renewable generator.

The commercial value depends on supply and demand, the technology and characteristics of the generation facility, the market in which the GO can be sold, and ultimately whether there are buyers willing to pay for the renewable attribute.

As the market develops and international recognition improves, the potential economic value of GOs should become clearer.

renewables.GE: How does the process work for a company that wants to demonstrate that its electricity consumption comes from renewable sources?

Onise Chichinadze: At a high level, the process consists of three main stages: issuance, transfer and cancellation.

First, eligible renewable electricity generation is registered and the corresponding GOs are issued by the issuing body.

The certificates can then be transferred between registered account holders. This could involve a generator, supplier, trader or consumer, depending on the applicable rules.

The final and most important step is cancellation. When a GO is cancelled on behalf of a consumer, that certificate can no longer be transferred or used again.

This is what allows the consumer to make a credible claim regarding the renewable origin of the corresponding amount of electricity.

The cancellation therefore represents the point at which the renewable attribute is effectively consumed.

Why European Recognition Matters

renewables.GE: Georgia is working toward closer alignment with the European Guarantees of Origin framework. What would recognition of Georgian GOs in the EU mean in practical terms?

Onise Chichinadze: Recognition of Georgian GOs in the European market would be a major development.

Today, one of the most important limitations for the Georgian market is that domestic certificates do not yet have the same cross-border market access as certificates issued within the established European GO system.

Recognition would potentially allow Georgian renewable generators to access a much larger pool of buyers and would make the renewable attributes of Georgian electricity more valuable internationally.

It could also strengthen Georgia’s position as a renewable-energy market and support closer integration with European energy and regulatory frameworks.

Importantly, this is not simply a question of connecting two IT systems. Recognition requires confidence in the underlying legal framework, issuance procedures, data quality, tracking, disclosure and prevention of double counting.

GSE is currently working with European institutions and the Association of Issuing Bodies toward the harmonisation required for this development.

renewables.GE: How important are technical compatibility, registry standards and Georgia’s cooperation with European institutions and the Association of Issuing Bodies?

Onise Chichinadze: They are extremely important.

A GO is ultimately a tracking instrument. For a certificate to be trusted across borders, another issuing body or market participant must be confident that it was correctly issued, that its information is reliable and that it cannot be duplicated or claimed twice.

This is why compatibility with European standards and cooperation with the Association of Issuing Bodies are so important.

GSE became an AIB observer and has been using this status to gain practical knowledge of European GO systems, participate in relevant meetings and work with European issuing bodies and experts.

AIB operates the infrastructure that connects national registries and facilitates international transfers between participating systems.

For Georgia, this cooperation provides an opportunity to develop the domestic system in a way that is compatible with the broader European architecture from the outset.

Investment, Exporters and Future Demand

renewables.GE: Could a stronger GO market influence future renewable-energy investment in Georgia?

Onise Chichinadze: Yes, potentially.

For a renewable-energy investor, the traditional revenue streams are primarily related to the sale of electricity and, depending on the project, support mechanisms or contractual arrangements.

GOs introduce another potential revenue component: the environmental attribute associated with renewable generation.

If the market becomes sufficiently liquid and predictable, this additional revenue could improve the overall economics of renewable projects.

It could also make corporate PPAs and other forms of direct renewable procurement more attractive, because the buyer could potentially obtain both electricity and the associated renewable attributes.

I would not suggest that GOs alone will determine investment decisions. However, as one component of the overall project economics, they can contribute to making renewable projects more attractive.

renewables.GE: Could Guarantees of Origin become more important for Georgian companies exporting to European markets?

Onise Chichinadze: Definitely.

This is potentially one of the most important future drivers of GO demand in Georgia.

European companies and international supply chains are increasingly interested not only in the emissions associated with their direct operations but also in the environmental characteristics of the electricity used in their production processes.

For a Georgian exporter, being able to demonstrate that a defined amount of electricity used in its operations is backed by recognised renewable-energy certificates could become an important competitive advantage.

This is particularly relevant for companies whose customers or international partners have renewable-electricity procurement or decarbonisation targets.

However, it is important to distinguish between simply having a domestic GO and having a GO that is recognised in the relevant international framework. This is why international recognition and interoperability are so important.

renewables.GE: Looking ahead, what would a mature Guarantees of Origin market in Georgia look like in three to five years?

Onise Chichinadze: I would expect a mature Georgian GO market to have several characteristics.

First, virtually all eligible renewable generation should be properly registered and actively participating in the system.

Second, there should be a meaningful number of active buyers — including suppliers, traders, large consumers and corporates — rather than certificates simply being issued and held.

Third, there should be regular transfers and cancellations, providing evidence of genuine end-user demand.

Fourth, Georgian GOs should ideally be interoperable with the European GO framework and, subject to the necessary regulatory and technical conditions, recognised for cross-border use.

Finally, the GO market should become a normal part of renewable-energy investment and corporate electricity procurement decisions.

The biggest challenge is therefore not creating the registry — Georgia has already done that.

The next challenge is developing the market around it: increasing demand, ensuring confidence in the system, strengthening regulatory and technical alignment, and creating the conditions for international recognition.

If those elements develop successfully, Guarantees of Origin could become an important component of Georgia’s renewable-energy market and a useful bridge between Georgia’s significant renewable-energy resources and European demand for verified renewable electricity.

Source note: Interview with Onise Chichinadze, Georgian State Electrosystem. Information on the operation, development and international alignment of Georgia’s Guarantees of Origin system is based on his responses.