We have looked back at the previous year and now it is time to look forward to the opportunities and threats that 2021 presents in the field of energy attribute certificates. The continued economic and environmental impact of the Covid-19 pandemic cannot be ignored, as evidence shown by lower carbon emissions worldwide throughout 2020. Electricity demand and supply in Europe has dropped in 2020 compared to previous years whilst demand for renewable energy tracking certificates remains somewhat unclear. What else can we expect in 2021?
France – Profiles and auction
Electricity suppliers in France are now obliged to provide a monthly breakdown of their company’s fuel mix in the national grid. The consequence of this decree is that companies who sell their electricity certificates to a supplier in France must provide a profile of the volume sold. This moved us to provide a tailor-made solution in the form of a French profile market in the Off-Standard section of the trading platform.
At the same time, France’s regulator Powernext continues to supply the market via its auctions. The results of the previous auctions can be found here.
In our previous article we attempted to foresee the impact that the trade agreement between the United Kingdom and the European Union will have. Although the exact impact remains unknown to this very day, a willingness to continue on the same foot as before Brexit is evident in the agreement. We are currently seeing continued trading activities for FiT and CfD profiles, albeit with a depressed price compared to previous years. There is yet much to be cleared up if we wish to continue. What seems most clear about the agreement so far, is that UK and EU national regulators will be the decision-makers on whether to acknowledge and recognise each others’ renewable energy attribute certificates.
GoO import and export in Switzerland
Export of GoOs from Switzerland to other AIB countries has to come to full stop whilst the other direction is still in full swing. This is due to a postponed inter-institutional framework agreement between EU and Switzerland which would mutually recognise each other’s certificates. Swiss energy consumers are allowed to continue to import AIB GOs, preventing a spike in Swiss prices.
Subsidy extension in Germany
In December 2020 the Umweltbundesambt announced the news that renewable energy subsidies have been extended up to potentially 2023. It will also launch a platform in 2022 to apply for the subsidies. Whilst this move may secure further investments into renewable energy projects, it simultaneously takes soon-to-be-available German energy certificates out of the trading market for a longer period of time due to the subsidy extension. It therefore continues to be difficult to price GOs from German origin, with the exception of hydro. For participation in our German hydro settlement prices, contact firstname.lastname@example.org.