Demand for GOs in Europe grows faster than supply in 2019

Demand for renewable energy with Guarantees of Origin (GOs) in Europe rose by 11.7% in 2019, or 61 TWh from 2018, while GOs supply grew by 3.5%, according to ECOHZ’s recent review of preliminary statistics.

The faster growth of demand has led to a smaller GOs supply surplus in 2019 than seen in previous years. “If the current development extends into 2020, the market will experience a rebalancing. This could have a direct impact on the pricing,” said Tom Lindberg, the managing director in ECOHZ.

Market Development Guarantees of Origin (TWh) 2006 – 2019

Hydropower remains the top source of GOs on the market, but its share is reducing as wind and solar power grow. In 2019, hydro accounted for about 62% of GO supply in 2019, followed by wind with 22% and bioenergy with 9%. Solar’s share was 5%.

The top three markets for GOs last year were Sweden, where demand grew by 38% to 65 TWh, France, with an increase of 26%, and Germany. The latter saw demand climb by 10% and surpass 100 TWh for the first time.

The statistics come from the Association of Issuing Bodies (AIB). It welcomed three new countries in 2019 -- Serbia, Slovakia and Greece. This year, Portugal and Montenegro are expected to join the community.

ECOHZ's full analysis is available here: https://www.ecohz.com/press-releases/good-news-for-european-renewables/

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