Guarantee of Origin (GO) Electricity Framework Agreement

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Image provided by the City of Alicante

This agreement helps municipalities to obtain better conditions in their energy contracts. It consists in the reduction of municipalities energy bill through a centralized energy purchase (GO Electricity Framework Agreement).

Impacts

This agreement has been promoted by the Provincial Government of Alicante (with the technical support of the Provincial Energy Agency of Alicante) to help municipalities to obtain better conditions in their energy contracts. It consists in the reduction of municipalities energy bill through a centralized energy purchase (GO Electricity Framework Agreement).

119 municipalities (out of 141), 4 minor entities and 16 other entities have joined the current framework Agreement (2020-2022).

Contracts make a total 85,500,000 euros and involve the management of more than 10,300 energy supply points. In addition, 283,000 MWh/year of 100% renewable energy are been placed on the market.

Energy supplied comes from renewable sources. This service allows the reduction of more than 79,000 tons of CO2 per year, and savings for all municipalities of almost nine million euros.

Thanks to this agreement municipalities can obtain better contractual conditions, achieving an average saving of 10.41% in the rates offered. This formula simplifies contracting procedures for local entities and generates cost savings in technical staff, since it is the Provincial Government who is in charge of all the procedures.

This Agreement has been a success and brings important economic and environmental benefits to the municipalities, so we believe it could be of interest within the CoM ecosystem.

Relevant challenges

Thanks to this agreement (promoted by the Contracting Unit of the Provincial Government of Alicante ) municipalities can obtain better contractual conditions, achieving an average saving of 10.41% in the rates offered. This formula simplifies contracting procedures for local entities and generates cost savings in technical staff, since it is the Provincial Government who is in charge of all the procedures. Energy supplied comes from renewable sources.