RECS international published a new document on the supply and demand of certified European renewable electricity.
Some stakeholders consider the market for certified European renewable electricity generation to be chronically, perhaps even structurally, oversupplied and therefore not living up to its potential. This received wisdom must be refuted for two reasons. Firstly, renewable energy markets are not only about providing income to producers that can be invested into new generation capacity; they are also about giving information that allows consumers to decide what kind of electricity they want to use. Secondly, the suggestion that renewable energy markets are failing to drive the transition is not supported by fact. This paper shows how renewable energy markets can indeed support the energy transition through consumer demand for renewable electricity by presenting data showing that:
- While the overall market for certified renewable energy in Europe has been historically oversupplied, it is now coming into balance.
- Certified supply only outstrips demand for some renewable energy, most notably hydropower, the oldest renewable energy technology and largest block of installed renewables capacity in Europe.
- Wind and solar GOs are in strong demand, to the extent that demand for power from these new technologies now outstrips certified supply.
The full report can be read here: The supply and demand of certified European renewable electricity