Is It Time To Rethink Your REGO Strategy?

For many years, buying Renewable Energy Guarantees of Origin (REGOs) was widely seen as an acceptable way for businesses to claim they were using green electricity. The certificates offered a simple route to report renewable consumption under emerging climate frameworks, and for a long time this was considered a meaningful step forward. But expectations have shifted, and relying on REGOs alone is no longer viewed as the most impactful or credible approach to sustainable energy procurement. 

The Core Problem with REGOs

The core issue is that REGOs do not usually lead to the creation of new renewable generation. They certify that renewable electricity has been produced somewhere in the system, but they do not directly influence investment decisions or accelerate the energy transition. As awareness has grown, businesses, investors and regulators have become increasingly critical of strategies that rely solely on certificate purchases to justify “100% renewable” claims, especially when the underlying electricity is still sourced from the general grid mix. What was once a pragmatic solution is now increasingly seen as a low-integrity approach that carries reputational risk. 

Reputational Risk and Rising Expectations

Over time, scrutiny has intensified. Stakeholders are more climate-literate, public expectations have risen, and reporting frameworks such as SBTi and CDP place greater emphasis on genuine decarbonisation. Forward-thinking companies have started to look beyond REGOs in favour of approaches that create visible, measurable impact. This shift reflects a maturing market in which organisations are expected not just to make green claims, but to meaningfully contribute to the growth of renewable energy. 

Changes to the GHG Protocol and the Rise of Hourly Matching

Proposed changes to the GHG Protocol’s Scope 2 Guidance could further shift how REGOs are used, prioritising hourly and regional matching over annual estimates. This would raise the value of granular, time-matched certificates while rendering generic REGOs less effective for emissions reporting. The MHHS programme supports this evolution, providing the real-time consumption data needed to validate claims. Together, these changes drive greater accuracy, transparency, and investment in renewable energy aligned with actual demand. 

What Are the Alternatives to REGOs?

More impactful alternatives are now available. Long-term Power Purchase Agreements (PPAs) allow businesses to buy electricity directly from specific renewable assets, offering price stability while supporting the development of new projects. Some suppliers now offer tariffs backed by their own renewable generation, giving businesses a clearer connection between their energy spend and actual green power and new suppliers are offering short term asset backed solutions too which can be sleeved into existing contracts with reduced contracting friction. On-site generation, such as rooftop solar or behind-the-meter solutions, remains one of the most tangible ways to reduce grid reliance. Energy efficiency and demand flexibility also play a crucial role by reducing the total volume of electricity required in the first place. 

Need Help Rethinking Your Strategy?

As companies reassess their approach, they often need clarity on what is credible, what aligns with their targets, and what is realistic for their operational and financial position. This is where we can support them. True Group help organisations understand their current baseline, their reporting obligations and their long-term sustainability goals. From there, we design tailored green energy strategies that combine short-term practical steps with long-term high-impact solutions. We also ensure businesses can communicate their decisions clearly and confidently, avoiding greenwashing and meeting stakeholder expectations with evidence-based narratives. 

REGOs still have a role in the system, particularly for tracking and reporting purposes. However, they should no longer be the centrepiece of a company’s green energy strategy. The market has moved on and the organisations leading the transition are those taking steps that deliver real climate impact. By moving beyond certificates and adopting more robust procurement methods, businesses can meet their targets with confidence and play a meaningful part in accelerating the shift to a cleaner energy future.