European renewable GOO demand up by 8pc in 2020

Demand for European renewable guarantees of origin (GOO) rose by 8pc to a record high last year, despite lower power demand as a result of Covid-19, with Spain emerging as the single biggest source of GOO demand for the second consecutive year

Cancellation of renewable GOOs in the Association of Issuing Bodies (AIB) hub increased by 8pc year on year to 735.1TWh in 2020, a record high and up from 332.6TWh in 2015 and 182.4TWh in 2010. Demand continues to outstrip supply, with 761.8TWh of renewable GOOs issued in 2020, up from 649.8TWh in 2019, 367.9TWh in 2015 and 25.5TWh in 2010.

Spain emerged as the largest user of GOOs from all sources, cancelling 175.7TWh, an increase of nearly 15pc year on year. Germany was the second-largest single source at 110.5TWh, up by 6pc year on year.

Spanish power demand fell to 27.1GW last year from 28.6GW in 2019, while demand in Germany fell to 53.9GW from 55.5GW in 2019.

Estonia registered the sharpest year-on-year increase, cancelling 1.54TWh, an increase of 414pc year on year, followed by the Czech Republic, where total GOO demand increased by 129pc to 1.4TWh. Demand in the Netherlands increased by 67pc year on year as the country adopted full disclosure, where certificates must be declared for every MWh of power supplied. Power demand in the Netherlands increased last year, averaging 12.6GW compared with 11.6GW in 2019, although still lower than demand in 2017-18.

Slovakia cancelled 909.3GWh in its first year since joining the AIB hub. Slovak market operator OKTE launched GOO auctions late last year, with the next one due in May.

Nordic hydro GOOs for 2020 vintage fell from €0.17/MWh at the start of last year to just under €0.07/MWh by the end of the year, according to Argus' assessments, while European wind GOOs, tradeable in the AIB hub, fell to €0.09/MWh at the end of the year from €0.26/MWh at the beginning of 2020. European solar GOOS remained the premium product, with 2020 vintage ending the year at €0.10/MWh, while European biomass GOOs were the lowest-priced product for most of the year, but fell to parity with Nordic hydro by the end of the year.