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In light of the recent events in the UK government, including the unprecedented turnover of prime ministers and the frequent new proposals for legislation changes, all energy market participants cautiously await further announcements on the future of green generation.
One area that seems to have not been captured within the amendments in those proposals is the process for issuing and redeeming of renewable energy guarantees of origin (REGOs) certificates.
Earlier this year, the decoupling of the British and EU green guarantees market post-Brexit was agreed and the change is due to come into effect in 2023 (with the next Compliance Period – CP22). We discussed this change and the implications of it in more detail in our previous REGO Index update in August 2022.
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.
REGO value still high between August and October
We continue to observe the impact of the market separation on all PPAs with REGOs attached. As fewer tradable certificates are available to traders in the UK for CP22 and beyond, prices are still highly elevated.
In September, the average value of REGOs started to fall ever so slightly, but the highest price per REGO remained stable at £7.50 per REGO between August and October. The highest prices were offered for various technologies (hydro, solar and onshore wind) for contracts starting in April 2024.
- The highest REGO price offered between August and October was £7.50/REGO.
- In September, the average price of REGOs attached to PPAs (future contracts) started to fall.
- An average price of REGO attached to PPAs (across various contract lengths and start dates) has now fallen to £2.66.
Meantime in Europe, the reduced rainfall and an above-average dry summer has resulted in a significant reduction in hydro generated power by five major European producers – Austria, France, Italy, Norway and Sweden – driving the value of GoOs up, too.
REGO Index update
The 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.
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.
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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.
