Demand for renewable electricity in Europe documented with Guarantees of Origin rose 28.3% year-on-year in 2017 to 471 TWh.
“The renewable electricity market in Europe continues to grow steeply,” Tom Lindberg, managing director at renewable energy solutions provider ECOHZ, said in commentary on figures from the Association of Issuing Bodies (AIB), adding that the market is also “more robust and more balanced than ever before.”
Demand is growing as European consumers and corporations are increasingly fulfilling their green energy plans by documenting their renewable purchases. Prices in the wholesale market have risen steadily compared to a year ago and even the lowest prices hover around EUR 0.65 for a standard, unspecified Guarantee of Origin, according to the announcement.
The value of the European market is conservatively estimated at EUR 450 million (USD 553m), which is more than two to three times higher than a year ago, said Lindberg.
Supply of issued Guarantees of Origin, meanwhile, is growing at a lower rate than demand. Currently the 2017 level is put at 410 TWh but is expected to be revised up by at least 100 TWh. In 2016, supply was 509 TWh.
“With new multinationals joining the global RE100 initiative, we are confident that renewable demand will continue,” Lindberg said. “Although prices are higher than ever before, they still are not reflecting the actual marginal value of renewables compared to fossil alternatives. We can thus expect the prices to be further pressured upward the next few years,” he added.