The European Commission has proposed mutual recognition of renewable Guarantees of Origin (GOs) between the European Union and the Energy Community, a move that could increase the commercial value of renewable electricity produced in Serbia, Montenegro, Albania, North Macedonia and Bosnia and Herzegovina.
Submitted on September 7, the proposal would allow renewable certificates issued under compatible Energy Community systems to be recognised across EU member states. This could give Western Balkan renewable generators access to a significantly larger market for renewable attributes while strengthening the economics of corporate power-purchase agreements.
Guarantees of Origin certify the renewable origin of electricity and are widely used by companies seeking to document renewable-power consumption. Greater recognition across borders could therefore provide regional generators with an additional revenue stream beyond wholesale electricity sales, improving the overall economics of renewable projects.
Montenegro issued around 1.35 million Guarantees of Origin in 2024, while Serbia already operates a domestic GO registry. However, the commercial value of these certificates has so far been constrained by differences in how national systems interact with the EU market. Mutual recognition could help reduce this fragmentation and improve the ability of renewable generators to monetise their environmental attributes.
For renewable developers, the impact could be particularly significant for project financing and corporate PPAs. A project supplying electricity to an industrial customer can potentially monetise both the physical power and the associated renewable certificate, creating a more valuable bundled product for companies seeking to demonstrate lower-carbon electricity consumption.
The measure could also make Western Balkan renewable projects more attractive to multinational companies with EU-wide renewable-energy procurement targets. Greater access to the EU market for renewable certificates could provide companies with a more straightforward mechanism for sourcing and documenting renewable electricity from projects across the region.
However, GO recognition should not be confused with the automatic acceptance of renewable electricity for purposes of the EU Carbon Border Adjustment Mechanism (CBAM). Electricity-related CBAM claims require a broader chain of evidence covering physical delivery, contractual arrangements, metering and other verification requirements. A Guarantee of Origin confirms renewable origin, but it does not by itself establish the physical electricity pathway required for every carbon-accounting purpose.
That distinction is likely to become increasingly important as companies in Serbia, Montenegro and other Energy Community markets seek to combine renewable electricity procurement with EU carbon-compliance strategies. Developers and corporate buyers will need to consider the separate requirements for renewable certification and physical electricity traceability.
The European Commission proposal nevertheless represents a potentially material improvement in the commercial position of Western Balkan renewable generators. It would also bring the region closer to integration with the EU electricity market at a time when renewable project economics are increasingly dependent on multiple revenue streams.
Wholesale electricity prices have become more volatile as solar-heavy power systems generate very low prices during periods of strong midday production while evening demand can bring significantly higher prices. The ability to monetise renewable attributes separately could therefore help developers partially offset wholesale-market pressure.
If approved, mutual recognition would add another financial layer to regional wind, solar and hydro projects and could make cross-border corporate PPAs more attractive and bankable. The key question for developers, however, will be whether greater market access generates sufficient certificate demand and liquidity to establish a durable price premium for renewable generation from the Western Balkans.
