As the world increasingly turns to renewable sources for power generation, understanding and addressing the pain points within the trading sector become pivotal. In our recent webinar titled ‘Challenges in the Renewable Power Trading Industry,’ we brought together industry luminaries Maria Lefler, Senior Customer Success Manager at CerQlar, Darren Macdonald, Senior Product Manager at CerQlar, and Janosch Abegg, Senior Originator at Axpo Germany. These seasoned experts delved into the evolving landscape of renewable power trading, discussing challenges, solutions, and the future of the industry.
In case you missed out on the webinar, here are the highlights:
The expansion of the GoO market brought unprecedented complexity
The Guarantee of Origin (GoO) market has experienced substantial growth. Previously overlooked, the demand for GoOs surged between 2019 and 2023, propelling prices from 0.10-1.50 Euros/MWh to 4-8 Euros/MWh. This expansion, however, introduced a wave of complexity into the industry – including that which comes with new, specific quality requirements.
Janosch also touched upon the increasing role of Power Purchase Agreements (PPAs) in renewable power trading. PPAs have emerged as crucial instruments, enabling renewable energy project financing and enhancing market predictability. They facilitate agreements between renewable energy developers and buyers, ensuring the purchase of electricity at predetermined prices, thus driving investment in renewable projects.
With the increasing emphasis on ‘going green,’ there arose a need for infrastructure to manage the complexities of GoOs. Janosch emphasized the subjective nature of a ‘green’ business, with enterprises having varied preferences – some prioritize new installations, others proximity to consumption sites, and some focus on synchronicity between production and consumption. These diverse criteria added layers of complexity to the renewable power trading landscape.
Why Differentiation Matters in the Evolving World of Guarantees of Origin
Our panel of experts underscored the importance of differentiation in the current GoO landscape. Previously, international transactions were straightforward, but now, tracking the production of assets has become imperative. The limitations of traditional registries, designed for only a limited number of renewables, became evident. Monitoring production, or ‘tracking of production,’ is crucial to ensure accurate data. Registries that have become less current pose a challenge, requiring traders to navigate through various platforms, creating a need for simplification.
The CerQlar Solution
Addressing the challenges head-on, CerQlar offers a post-trade settlement management tool for energy attribute certificates (EACs). In the traditional GoO landscape, market participants often rely on basic tools like Excel sheets and regular electricity ETRM systems, leading to operational mistakes. Our platform provides a solution by offering a robust system capable of handling GoO positions accurately. This mitigates operational risks and empowers users to make strategic trading decisions based on precise portfolio data.
The webinar, which is now available to watch on demand, offered a comprehensive view of the challenges facing the renewable power trading industry, emphasizing the complexities arising from the rapid expansion of the GoO market. Our commitment to simplifying post-trade settlement management stands as a beacon of innovation in an industry navigating the intricate web of evolving demands and requirements. As renewable power trading continues to evolve, solutions like CerQlar’s platform become indispensable in ensuring efficiency and accuracy in the dynamic landscape of green energy trading.
