Support for REDII but concerns about GO auction

30 April 2017

In an effort to strengthen consumer choice as well as clarify post-2020 regulations, on 30thNovember 2016 the European Commission released its vision for a new Renewable Energy Directive (REDII). However, there is one critical place where end-users, market players, environmental groups and many national governments all disagree. In article 19:2 of the draft text there is mention of a mandatory auction of Guarantees of Origin (GOs), the ‘currency’ that drives the renewable electricity market. There is considerable concern that this auction, in its current form, would take away consumer choice in the electricity market and restrict the ability to support specific renewable projects.

Auctions would commoditize renewable electricity and make it impossible to choose a specific product. The proposal would severely impact existing long-term agreements as well as new renewable projects in Europe. Generators for corporate PPAs would be obliged to release the GOs for Government-run auctions, rather than issuing them to the PPA offtaker – undermining sustainability goals of the corporate. It would strip end-consumers of the opportunity to have direct contact with electricity producers and would significantly complicate the possibility for community investment in renewables.

RECS International is leading a coalition of stakeholders who address these issues in the European Commission and the European Parliament. On the 26th of April RECS International spoke with the Commission on these matters and will continue the debate.

Read the full article on the Ecohz website here.