Consumers, governments and corporations are becoming more aware of the origin of the energy that they consume,
and the guarantees of origin (GO) market is increasing in Europe and worldwide. More than 25% of the electricity
consumed in Europe is consumed by using GO markets.
We work out the subgame perfect Nash equilibrium when the spot and the GO markets operate sequentially, and different market
designs are implemented in the GO market.
We find that the introduction of GO market could have a pro-competitive effect in the spot market.
Moreover, the change on prices in the spot market induced by the introduction of a GO market could reverse the
flow of electricity between nodes in the spot market.