Just a few years ago, it was enough for a Romanian company to declare in its sustainability reports that it was using “green” electricity, relying on Guarantees of Origin (GOs) to tick the ESG box. Today, however, that approach no longer holds water. Investors, banks, regulators, and even customers across international supply chains now demand clear, quantifiable evidence that the energy used is genuinely renewable, additional, and responsibly sourced.
For industrial companies in Romania, the pressure to move from a symbolic “green” label to a genuine decarbonization strategy has never been greater. This is no longer a question of reputation — it’s a matter of competitiveness. And such a transition requires more than compliance certificates: it demands a strategic, contractual, and operational transformation.
Guarantees of Origin are no longer enough
Guarantees of Origin still play a role in ESG reporting, but their real impact is limited. As Marc Fevre, Legal Counsel at Rezolv Energy, explained during a recent industry webinar, relying solely on GOs — especially those from legacy assets such as old hydropower plants or fully depreciated installations — is increasingly being rejected by frameworks like RE100 and the Science-Based Targets initiative (SBTi). “Standalone GOs provide a form of administrative recognition, but they do not directly reduce your carbon footprint or protect against energy price volatility,” Fevre pointed out. Moreover, Romania’s current GO system is not yet compatible with the European EECS framework, which limits their usability in cross-border sustainability reporting — a barrier that is expected to be lifted only in 2027.
On-site generation is not always the ideal solution
For companies seeking greater control over their energy sources, installing their own generation capacity — especially solar panels — often appears to be the most direct route. But the reality on the ground is often more complicated. As the Bekaert case study presented by Rezolv Energy illustrates, not all factories have rooftops that are structurally sound or sufficient in size. In some cases, the building’s materials (such as asbestos) make solar installation unfeasible.
Furthermore, on-site generation is limited by natural conditions and the specific consumption profile of each facility. Solar production, for instance, drops sharply in winter and stops altogether at night — precisely when many industrial processes operate at full capacity. So even in the best-case scenario, on-site production typically covers only part of the demand, requiring additional solutions.
PPAs – the backbone of a real decarbonization strategy
In this context, Power Purchase Agreements (PPAs) are emerging as the backbone of a credible path to 100% renewable electricity. Through a PPA, an industrial company in Romania can purchase electricity directly from a wind or solar project developer under a long-term contract — usually lasting between 10 and 15 years.
The benefits are compelling. A fixed or indexed price provides protection against market volatility and enables better financial planning. The energy comes from a traceable and additional source, and the GOs are transparently bundled. Moreover, contracts can be tailored to each factory’s consumption profile, helping avoid over-contracting or the need to resell excess electricity under unfavorable market conditions.
A clear example is the virtual PPA signed between Rezolv Energy and Bekaert, under which the manufacturer will receive 100 GWh of wind energy annually from a project currently under development in Buzău County. This is a virtual — or financial — PPA, meaning the electricity is not physically delivered to the factory but accounted for via a financial settlement. From an ESG standpoint, the impact is equivalent to a physical PPA, but with significantly greater flexibility.
The ideal mix: on-site generation + long-term PPA + GOs
Rezolv Energy’s experience shows that the optimal strategy does not lie in choosing a single solution, but in combining several tools intelligently. An ideal portfolio may include on-site production (where feasible), a long-term PPA with a wind or solar source (or both), and GO certificates to cover the remaining balance. “The most effective approach is a hybrid one,” says Milan Kamaryt, PPA Origination Lead at Rezolv Energy. “Beyond reducing costs, such a mix protects against market risks and strengthens a company’s ESG profile.”
Rezolv also advises companies to contract between 60 and 80% of their estimated consumption through a PPA, leaving room for flexibility in case of fluctuations or changes in operations.
The transformation of a factory into a site powered entirely by renewable energy is indeed possible — but it cannot be achieved through declarations or checkboxes in a sustainability report. It requires strategic foresight, trustworthy partners, and well-calibrated legal and financial instruments.