Renewable power GO: market looks to new drivers of liquidity and supply

The market for European Guarantees of Origin, or GO, electronic tags that certify the source of renewable electricity, is evolving quickly. S&P Global Platts has been monitoring developments, including the impact of recently-launched French auctions; price dynamics across regions and technologies; and where additional GO supply will come from in the coming years. Here are the key trends that European utilities and other market participants should be following this winter: 1. French auctions revive market after summer lull   French GO auctions launched on the Powernext exchange in September. These made available for the first time GO issued from generation facilities benefiting from state subsidies, and generated clearer price signals for the market. The September auction, in particular, brought buyers into the market after the summer lull and saw prices increase into the beginning of October, including in the secondary market. However, the October auction saw rather limited activity and confirmed a somewhat lower price level for the market. In the October auction, almost 2 TWh of wind GO sold at an average weighted price of Eur0.53/MWh, 14% lower than the average April wind GO auctioned in September. The other technologies were also auctioned at a lower level than in… continue reading

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Source: CTRM Center

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