Market review and forecast for wind GOs updated

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The recently updated ‘review and forecast for wind GOs’ analysis shows that:

• The share of wind GOs in the production and disclosure mix is growing, accounting for about 18% of renewable GOs in AIB in 2017.
• Due to national policy restrictions, only 20% of wind power generation in AIB receives “freely tradable” EECS-GOs.
• The wholesale prices of generic EU wind GOs and Nordic hydro GOs are cointegrated, i.e. they show the same direction of movement, while wind GOs have lower trading volume and higher price volatility.

Following the governmental support policies in AIB countries and the declining LCOE (Levelized cost of energy), wind power development soared in the last decade with an average growth rate of 11%. The a...