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Strong results from French auctions boosts OTC market sentiments

Friday, 23 April 2021

Powernext held the nineteenth auction of Guarantees of Origin (GO), with the book opening on 14 April and order matching on 21 April, for January 2021 production GOs.

A total of 2 386 GWh of supported RES-E GOs were auctioned, which is slightly less than the amount of GOs offered last month (2 604 GWh). All of the offered volumes were sold compared to 84% last month. Wind GOs represented 73% of the total sold volume.

The Wind price increased from 17.86 to 33.59 Eurocent/MWh, the higher price correlating with the higher volume of sales reflecting strong demand. Similarly, the Hydro and Solar price was around 30 Eurocent/MWh, with the price increasing more than 150% when compared to the previous month. Thermal generation GO prices were at 24.47 Eurocent/MWh; while Thermal GOs have seen few sales recently (less than 5% of offered volumes were sold in the last four months prior to this month), all the offered volumes this time were sold.

This strong demand can be partly due to the auction of GOs from the new vintage year 2021 along with the impact of monthly disclosures. Nevertheless, the strong French auction may have boosted the market sentiment in the OTC EU GO markets, as the prices for GOs have increased by an average of 5%  today.

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