Each MWh of green electricity produced is worth one green certificate. Certificates are used for tracking the specific location where the renewable energy is produced and by which technology (e.g. wind or solar). It allows corporations to document their electricity consumption from a specific renewable asset, such as a wind or solar farm, and to report on their sustainability efforts.
When procuring energy through a CPPA with Ørsted, a certificate is delivered with every MWh purchased. In this case, the certificate is directly related to the renewable asset and the amount of electricity purchased. This is a very transparent way for corporations to report on their scope 2 GHG emissions.
Certificates that aren’t tied to a PPA can be sold on the open market as an energy commodity. In this case, the price of certificates is as volatile as the market it represents. Certificates alone aren’t linked to the power that a corporation buys.