Reasons for current drop in GO prices: Markets Wrap

GO prices have been facing significant downward pressure since when we made our last target prices estimate in February 2019. Uncertainty regarding French GO volumes, where up to 44 TWh of renewable power generation may be auctioned; possible import substitution of GOs by UK REGOs in the Netherlands; and increasing Nordic hydro reservoir levels have all contributed to the current gloom. We are assessing the changes and will publish updated target prices for Nordic Hydro GOs soon.