Thanks to skyrocketing prices, guarantees of origin could become a significant source of revenue for renewables

The European market for certificates for electricity generated from renewable energy sources—guarantees of origin—was long considered relatively insignificant because of persistently low prices. But after an unprecedented price surge in 2022, it is now attracting investors’ attention.

Higher prices for guarantees of origin and the resulting investor interest could mean that the guarantees become a much more significant commodity for renewable energy operators. The S&P Global news service reported.

Last year, thanks to growing demand for renewable energy, the price of guarantees of origin exceeded 9 EUR/MWh, according to the news service, whereas it had remained below 1 EUR/MWh for most of the previous decade. Guarantees are issued for every 1 MWh of energy from renewable sources.

A substitute for state support

According to the news service, a new analysis by Ecohz forecasts that prices will remain well above their long-term averages. Asset owners in the European Union could therefore earn up to 57 billion EUR from the guarantees market alone by 2030, enabling further investment in clean energy generation (which is also the purpose of guarantees of origin).