Guarantees of Origin: Interesting market segment with good prospects for investors


Efforts to effectively protect the climate are driving demand for electricity from renewable energy sources. But those who use green electricity also want to be sure that it really is “green”. Here, guarantees of origin create transparency by certifying the electricity purchased and consumed. “For every megawatt hour of electricity generated from renewable energy sources, a so-called GO (Guarantee of Origin) is generated”, explains Voigt.

In the past, these certificates were often marketed directly with the electricity. For several years, however, a separate market with its very own rules has developed here throughout Europe. “While these GOs used to be just an accessory, today they are definitely an interesting option in marketing”, says Voigt.

In the wake of the Corona pandemic, prices for GOs declined, but a recovery has been evident for several weeks. Between the end of April and the beginning of June, for example, certificates for hydropower from Scandinavia (Nordic Hydro), which reflect the trend of all guarantees of origin, became more expensive.

The prices of certificates of origin are also likely to increase significantly in the coming years. This is because demand for green electricity with certified origin is already rising much faster than supply. “Although prices such as the around seven euros/MWh achieved in 2018 for guarantees of origin from wind power plants in the Netherlands will probably no longer be reached but for at least the next ten years, we’re going to see a major shortage that will cause certificate prices to skyrocket”, Voigt says.

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