First guarantees of origin auction in Greece attracts 14 participants

The first guarantees of origin (GO) auction is taking place today in Greece with the participation of 14 companies.

According to Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP), which organized the auction, bidders include names such as Public Power Corp. (PPC), Heron, Metlen, Elpedison and MORE as well as foreign groups AXPO, Caely Renewables, Origo and STX Commodities.

DAPEEP offered three separate GO products covering an overall 890 GWh of green energy produced during the fourth quarter of 2023 by renewable electricity plants that started operation after January 1, 2021.

Giarentis: GO prices expected at around EUR 5 per MWh

In total, three million GOs are scheduled to be auctioned this year. The results of the first round are supposed to be announced on July 3.

DAPEEP’s CEO Giannis Giarentis said recently that its GO register is connected to the European Association of Issuing Bodies, meaning that Greek products are fully integrated into cross-border trading.

It should be noted that a secondary GO market is planned to be established at the Hellenic Energy Exchange (HenEx). Recently its operator signed an agreement with its Cypriot counterpart to facilitate similar developments in the island state.

Income from issuing GOs is meant to support the renewable energy account ELAPE, held by DAPEEP, the body responsible for payments to producers. The account is expected to reach a deficit of about EUR 200 million this year, meaning that more income sources are desperately needed to bridge the gap.

According to Giarentis, GO prices are expected to reach up to EUR 5 per MWh in today’s auction, which would translate to EUR 15 million for ELAPE for the entire year.

European GO market to grow by 2030

A recent study by Aurora Energy Research showed that the GO market is expected to reach EUR 3.7 billion by 2030. Buyers from Germany, France and Italy constituted 50% of the European market in 2023.

In recent years the market has shifted from hydroelectric plants to other renewables, such as photovoltaics and wind farms. Its expansion to battery installations is also expected, given their importance for Europe’s energy transition.

UPDATE: Average price comes in at only EUR 0.4 per MWh

All guarantees of origin (GO) products were sold during Greece’s first auction, organized by DAPEEP.

Even though the official announcement is expected on July 3, organizers revealed that the average price was EUR 0.4 per MWh. It means that income from the sale of GOs was just EUR 350,000.

When it comes to competition, 13 out of the 14 registered participants bought quantities, through a total of 500 offers, among them all the Greek companies.

DAPEEP claimed that even though it expected a higher price, the result was still positive, in comparison to other recent auctions in Europe, for instance in Hungary.