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What Is the Price of Guarantees of Origin? Here Are Some Public Price Signals
The market for guarantees of origin (GO) for electricity may seem complicated. Unlike many other markets where prices are fully transparent – visible to all, harmonised, and straightforward – the GOs market operates mainly on the basis of private bidding transactions. Renewable energy producers themselves must look for potential buyers and study their interest and the prices they offer. Soldera offers a more straightforward solution for selling GOs, but more about it at the end of the post. Now, on to the price of guarantees of origin.
Read more: What are guarantees of origin?
What influences the price of guarantees of origin?
We aim to ensure the best price for our members, so we actively monitor the market. Before introducing specific price signals, it is essential to note that a single price for guarantees of origin does not actually exist. The price of GOs varies due to several factors, the main ones being the following:
- Year of manufacture: According to European regulations, the trading period for guarantees of origin is twelve months after the end of production. As a result, more is usually paid for recent certificates. In addition, several countries restrict the use of guarantees of origin from the previous year to prove the consumption of green electricity in the following year. We have noticed that the price difference between 2023 and 2024 can be as much as triple! There is often no interest in purchasing soon-to-be-expired guarantees of origin. To this end, Soldera regularly organises sales of the guarantees of origin of its members to obtain the best price for fresh certificates.
- Country of origin: The country of origin influences the price mainly depending on whether the country’s system of guarantees of origin is part of AIB’s membership. The certificates of AIB member states are equal to each other and, therefore, more valuable. Poland, for example, is not yet a member of AIB. Some countries, such as the Netherlands, value their local guarantees of origin particularly highly.
- Type of energy: The way energy is produced can also impact the price. For example, guarantees of origin based on biomass or renewable fuels may be cheaper than guarantees based on wind, hydro, or solar energy. Finland also issues guarantees of origin based on nuclear power, which may not be as highly valued compared to other energy sources.
- Quantity: Many buyers are only interested in deals over 10,000 MWh. Tenders for smaller quantities are often less advantageous because they involve transaction costs on the buyer's part. Soldera sells across all connected production sites and ensures that producers of all sizes can access market prices.
Below, we have listed various sources that you can use to monitor the prices of guarantees of origin if you wish.
French auctions (EEX)
The French auction organised by EEX is the primary source of price information. In France, state-supported guarantees of origin for renewable energy are owned by the state and auctioned to reduce the cost of subsidies. The auction occurs monthly in a competitive environment, and the results are publicised. This is an excellent reference if you want to understand the movement and formation of prices.
It is worth noting! At French auctions, guarantees are sold for only one production period at a time. For example, December 2023 production was sold in March 2024, and January 2024 production was sold in April 2024. France, therefore, receives price signals through the auction only for one production year at a time, and this is important to consider when interpreting the results.
The results / prices of the French auction can be found here: EEX GO auction results
We also wrote a price analysis based on the transactions in the latest French auctions.
Hungarian auctions (HUPX)
Another reliable source is the Hungarian auction, managed by the Hungarian Power Exchange (HUPX). Trading with GOs takes place here in a competitive environment as well, and the results are made public to everyone. Although fewer offers and smaller volumes exist, the Hungarian auction is still a valuable reference for all GOs.
It is worth noting! The Hungarian auction summary table ‘Volume Weighted Average Price’ shows data over several years of production, which may give the impression that new guarantees of origin are cheaper and older ones more expensive than they actually are. We recommend looking at the detailed view to get a more accurate idea of prices.
The results of the Hungarian auction can be found here: Results of the HUPX GO auction
Montel
Montel is a versatile platform that provides analytics, consulting and news about the energy market. Its marketplace allows large organisations to post requests to buy and sell GOs. Although transactions take place in the form of private offers (with the exchange of all mutual documentation), Montel provides a daily overview of price movements. Although it’s not a 100% public source, it’s helpful in monitoring real-time price movements.
You can find more information about Montel by clicking here
Soldera – your sales agent on the guarantees of origin market
As we mentioned in the introduction, the market for guarantees of origin for electricity can be complex and unclear. However, Soldera offers a simple and efficient solution for managing and selling guarantees of origin.
Renewable energy producers are divided into two main categories:
- those who already receive guarantees of origin but do not wish to engage in active sales,
- and those who have not yet started the process of obtaining guarantees of origin.
Soldera is the perfect solution for both groups!
- We will make sales for you, find the best supplier, carry out the transaction and prepare the necessary documents for you.
- After registering, just one click of a button is enough to receive withdrawals on our platform.
You can find more information about Soldera and how to join on our website and read more about guarantees of origin on our blog. We look forward to helping you increase your renewable energy revenues and save you time!
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