Renewabl Market Recap: Your bi-weekly update on clean energy - #8

We’re back with the latest updates from the renewable energy space! This fortnight has been filled with significant corporate initiatives, policy developments, and new projects, all accelerating the global transition to net zero. Here’s a quick roundup of the highlights you may have missed:

Market commentary

• The Guarantees of Origin (GO) market showed a mixed performance over the past two weeks. European wind and solar GOs for 2026 climbed to €1.54/MWh, reflecting an increase of €0.11/MWh amid heightened midweek trading activity. Meanwhile, the 2024 vintage remained subdued at €0.36/MWh, reflecting continued bearish sentiment and limited liquidity.
• In the UK, REGOs recorded their first notable gains in weeks. Non-bio CP-23 contracts rose to ￡4.00/MWh following robust auction activity, marking a shift after a prolonged period of flat prices.
• Renewable energy production continues to pressure the market, with Nordic reservoirs maintaining levels well above seasonal norms and hydro output outpacing 2023 by 54 TWh. Upcoming auctions in Hungary and France, contributing 4 TWh to the market, are likely to keep prices under pressure in the near term.

Policy and energy infrastructure

• COP29 Business Commitment: At COP29, leading business executives made strong commitments to transition away from fossil fuels.
• EU Climate Progress: The European Parliament recently updated its progress on climate action.

• ESB Battery Storage Project: ESB has officially opened its latest battery storage project in County Cork, Ireland, as part of a €300 million investment in energy infrastructure.
• China: Despite U.S. trade threats, China’s clean energy market is set to grow, with renewables expected to account for 80% of new global power capacity by 2030.

Corporate Initiatives and New Projects in Renewables

• Tfl: New electric buses using rapid-charging pantograph technology will run on London’s 358 route, reducing emissions and costs.

• Alfa Laval: The industrial equipment manufacturer has accelerated its net-zero target by three years, aiming to reach net-zero emissions by 2027.
• Mercedes-Benz Sustainability Focus: Mercedes-Benz has refined its sustainability strategy, focusing on six key ESG areas.
• Amazon: Amazon commits over $500 million to nuclear energy projects across the U.S. to support AWS's clean energy needs, including a partnership with Dominion Energy.
• Microsoft: Microsoft signs a 20-year PPA with Constellation Energy to restart the Three Mile Island Unit 1 nuclear reactor, adding 835 MW of carbon-free energy to the PJM grid.
• Google: Google secures long-term clean energy agreements for 275 MW in Asia-Pacific to bolster renewable energy operations.
• EU greenhouse gas emissions: EU greenhouse gas emissions dropped 8.3% in 2023, achieving a 37% reduction from 1990 levels while GDP grew by 68%, per the European Commission's latest report.
• Genzero and Trafigura: GenZero and Trafigura invest over $100 million in a nature restoration project in Colombia to sequester 20 million tonnes of carbon.

Reports and Papers

Sustainable Finance Surge: Société Générale’s €500 billion target for sustainable finance is part of a larger trend in the financial sector to direct capital toward green initiatives.

UK Voluntary Carbon Market: A new coalition of startups is calling for a consultation to boost the UK’s voluntary carbon market.

Flexibility in Renewable Energy: A new initiative by SolarPower Europe highlights the growing need for more flexible renewable energy systems.

Key Highlights from Eurelectric's Report on 24/7 Carbon-Free Energy (CFE)

We are thrilled to see more reports covering 24/7 carbon free energy, here are a few highlights from the report:

• Corporate clean energy procurement has surged tenfold since 2015, reaching a record 46 GW in 2023, equivalent to powering France.
• A revised Greenhouse Gas Protocol may introduce 24/7 carbon-free energy matching as a standard for Scope 2 emissions, aligning energy use with renewable generation hour-by-hour.
• Industries like tech, banking and pharmaceuticals are exploring multi-year contracts for 24/7 renewable supply, while Ireland and the EU are advancing supportive policies.
• Challenges include limited product availability, low demand visibility for suppliers and insufficient access to granular grid data.

You can read the full report here.

Upcoming Event: Hourly Pricing of EACs – A New Opportunity for Generators

We’re excited to announce an upcoming event that will explore the emerging opportunities in the hourly pricing of Energy Attribute Certificates (EACs). This new pricing structure could significantly impact how generators maximise revenue and market engagement. More details to come soon!

Wrapping Up

That’s all for this week’s recap! As we continue to see major corporate investments and policy developments in the renewable sector, the momentum toward a net-zero future is undeniable. Stay tuned for more exciting updates in the coming weeks.