The independent survey of 50 organisations across the industry, that ran from June 22-July 3, also revealed that 71% of respondents felt that Covid-19 had a negative effect on REGO [renewable energy guarantees origin] prices. Over a third believed that these effects would continue for at least 6-12 months and a further 21% thought these impacts would last significantly longer than that.
Commenting on the survey results, Tom Andrews, senior consulting analyst at Cornwall Insight, said: “Conditions for renewable generation were good, and saw above-average generation for this time of year; this has led to an increase in the availability of certificates. On its own, this would not necessarily cause such a dramatic drop in value for REGOs.
“However, this period of good renewable conditions was coupled with the Covid-19 pandemic, which saw electricity demand fall by 18% on average in April. This meant the market was oversupplied with certificates, which caused the prices to drop.
“While prices may be low currently, the sentiment amongst respondents show[ed] that the value of green certificates is likely to rebound as the economy recovers from Covid-19. However, this is largely dependent on how fast the economy bounces back after the pandemic, as electricity demand is intrinsically linked to economic activity.”
