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Plugged In: the energy news podcast

Corporates hunger for green power

Nov 3, 2023
Bruno Brunetti, Head of low-carbon electricity analytics at S&P Global Commodity Insights, discusses the increasing demand for guarantees of origin (GOs) and the potential rise in prices. The podcast explores the dynamics of supply and demand in the market, the driving factors behind the GEO price, the relationship between UK and EU GOs, and the hotspots for growth in the renewable energy market.
26:00

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Growing demand for guarantees of origin (GO) driven by EU directives and technical criteria for renewable energy purchases could drive up prices in the market.
  • The link between guarantees of origin (GO) and power purchase agreements (PPAs) creates a more stable business case for renewable developers as demand increases.

Deep dives

Outlook for Guarantees of Origin and PPA Markets

The prices of guarantees of origin (GEOs) are an important factor in investment decisions for renewable facilities and PPA deals in Europe. Currently trading at around four Euros per megawatt hour, the market is balanced with growing supply and weaker demand from corporates. However, medium-term trends suggest GEO prices could reach six Euros as demand is driven by commitments to EU directives and updated technical criteria for renewable energy purchases.

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