Celebrating Two Years of the Pan-EU Guarantees of Origin Spot Auction
Amsterdam, Berlin, Bern, Brussels, London, Paris, Vienna, 14.10.2024. EPEX SPOT is celebrating two years since the launch of the first Pan-European Guarantees of Origin (GOs) Spot Auction in September 2022. With 70 GOs trading members, and close to 10 TWh traded so far, this market represents the most important multilateral market for Guarantees of Origin trading in Europe.
In the most recent GOs spot auction, on 25 September 2024, 880 GWh were traded - a 46-fold increase from the 19 GWh trades in the first GO auction two years ago, demonstrating how liquid this innovative and customer focussed Guarantees of Origin market has become.
Emine Duygu-Sisman, Head of Environmental Markets at EPEX SPOT, states: “We are committed to supporting the energy transition in Europe by expanding into environmental markets. EPEX SPOT brings greater transparency and efficiency to the European GOs market, listening to market participants’ needs and thereby fostering the growth of renewable energy.”
The unique market design of the GOs spot auction enables market participants to access a monthly anonymous auction for GOs from renewable production comprising a wide range of interconnected countries that are part of the European Energy Certificate System (EECS). Over the past two years, EPEX SPOT has not only established an important GOs trading community, but also continuously introduced improvements for the brand-new market, giving members the possibility to trade generic or specific GOs by choosing amongst four criteria: the technology (hydro, wind, solar, biomass), the country, the production month, and the subsidy regime. This allows market participants to conveniently sell and buy GOs in line with their individual needs, generating an additional income source for renewable producers.
Guarantees of Origins are a tracking instrument that permit to confirm the origin of electricity and to determine the quantity stemming from renewable production within the total of electricity that flows through the grid. This makes them an indispensable tool to promote the production and consumption of green electricity, by ensuring its traceability and to enable investments into renewables.
With a focus on innovation and market growth, EPEX SPOT will introduce the possibility to trade nuclear GOs, placed in a separate orderbook, as of the October 2024 auction, in addition to the already existing technologies. Furthermore, the exchange will launch a second auction per month as of 2025, to provide more regular price signals and to develop the liquidity of the platform.
By stepping towards the environmental markets, the European Power Exchange aims at actively serving the energy transition by increasing transparency on the European GOs Market. To this end, EPEX SPOT has developed a state-of the art trading system and a smart matching algorithm to provide safe, secured, and transparent standards for the community that trades environmental certificates. The Exchange will keep observing the market’s needs and the European regulatory framework to further adapt to market participant’s wishes and expand the offering.
- ENDS
The European Power Exchange EPEX SPOT SE and its affiliates operate physical short-term electricity markets in 13 countries: in Central Western Europe, the United Kingdom, Switzerland, the Nordics and in Poland. Furthermore, EPEX SPOT newly offers local flexibility markets solution and Guarantees of Origin auctions, to foster the integration of renewable energy sources and to enhance the engagement of consumers and producers in the power market. As part of EEX Group, a group of companies serving international commodity markets, EPEX SPOT is committed to the creation of a pan-European power market. Over 400 members trade electricity on EPEX SPOT. 49% of its equity is held by HGRT, a holding of transmission system operators. For more information, please visit www.epexspot.com.