Reporting Purchased Product Electricity-A suggested Development of the Present EU Audit of Guarantees of Origin

In the old, physical, way of regarding the Product Electricity; as being similar to water flowing in pipes, the statement “All power mixes on the grid!” held true. However, from a market and consumer power point of view, and from an economic view of the product that we purchase (i.e. the Product Electricity) the statement mentioned above is false. The Product Electricity which is audited; production versus consumption, does not mix with any other Product Electricity. Only the Product Electricity which is not audited does mix. The anonymous agents who are the carriers of the purchased Product Electricity, i.e. the kWhs, are mixed. The product itself (the Product Electricity) is not mixed. This new perspective is not intuitively easy to understand, especially not for electrical engineers or anyone working in the power sector. Nevertheless, it is the correct way to understand the new situation with deregulated power markets offering different “colours” of power, i.e. Products of Electricity with different environmental loads. In this new situation, the new perspective on Product Electricity shows that there exists a possible choice of not consuming any coal power. However, the market-based methods for reporting purchased electricity from a specified origin do have shortcomings and this article proposes a concrete solution to the most apparent pedagogical flaw; that it is possible to buy only the Guarantee of Origin (GO), separate from the power itself. Even though transactions like that are both allowed and correct (in theory) they do not increase the acceptance, nor the understanding, of how it is possible to not purchase and consume any coal power. Furthermore, the ongoing important scientific discussion about consumer power on the power markets is hindered by the general confusion and mistrust. Suggested development of the present audit of Guarantees of Origin is presented.