We have seen continued increases in REGO prices, with an increase of over 2000% since we started tracking prices back in 2021 (from less than 30p to over £6.30). In July 2023 we saw our highest prices yet, with an average price of £6.41.
At Renewable Exchange, we monitor the value of REGOs attached to PPAs and provide you with regular updates through our REGO Index reports. If you’d like to discuss your REGO strategy with our PPA Experts, get in touch with us at [email protected] or through our website contact page.
REGO value continuing in upwards trend
Whilst there are a multitude of factors that impact REGO pricing, two of the biggest causes of the increase over recent months are Guarantees of Origin (GoOs) and renewable generation.
Since April 2023 OFGEM is no longer recognising EU Guarantees of Origin (GoOs), increasing demand for UK REGOs (Renewable Energy Guarantees of Origin). We’ve also seen that the amount of renewable energy generated in H1 2023 has dropped by 5.9% compared to H1 2022*
*Data calculated from Drax Electrical Insights electricinsights.co.uk
Whilst there are still significant increases in REGO prices, we can see the rate of increase is slowing down. This could be due to domestic customers with price caps on their bills moving to the Standard Variable Tariff, which doesn’t necessarily require the supplier to secure REGOs.
- The average price in July 2022 was £2.82, 537% higher than July 2021.
- The average price in July 2023 was £6.41, 127% higher than July 2022.
Here is some data showing the average bid price since March 2021.
- In July 2023 the highest REGO price offered was £9.50/REGO.
REGO Index update
Renewable Exchange’s REGO Index provides statistical evidence of REGO values for future periods. All prices were offered to generators tendering power purchase agreements (PPAs) on the Renewable Exchange platform. The analysis doesn’t include values obtained in REGO-only tenders. Bids were submitted from traders and licensed suppliers in the UK.
We have updated our methodology slightly since our previous REGO Index update in November 2022.
The data analysed here consists of the REGO component attached to PPA bids on the Renewable Exchange platform for all technology types and contract lengths. The complete PPA offers would have been inclusive of commercial value for power, ROCs where applicable, and embedded benefits.
Your REGOs strategy
At Renewable Exchange we can help you understand the best option for your REGO offtake: whether it’s selling them off as part of the PPA or separately, in fixed volume chunks or in a long-term structured offtake.
Reach out to our team to discuss your REGO strategy, [email protected]
Renewable Exchange discloses the REGO Index analysis to encourage transparency in the energy market and provide fair access to information for all participants.
For accurate, site-specific PPA price estimate, inclusive of subsidies, green certificates and embedded benefits, log in to the Renewable Exchange platform.