The news portal Serbia Energy announced that Hungary is launching organized market for guarantees of origin in June 2022. The guarantee of origin (GO) market in Europe has been growing steadily over the past decade, offering a flexible and efficient tool to help companies achieve their clean energy goals and support renewable energy production. In the long run, such a market-based system helps increase the financial sustainability of renewable energy projects and stimulates investment in the renewables sector, thus suppressing fossil fuels at lower prices and contributing to the EU’s energy transition.
Organized markets focused on guarantees of origin auctions are already widespread in Western Europe, but Central and Eastern Europe is catching up. Hungary recently announced that it will launch its organized market for guarantees of origin to increase transparency and liquidity and support its growing renewable energy sector.
The Guarantee of Origin (GO) is an instrument that enables electricity consumers to actively choose sustainable energy production in relation to fossil fuels and thus send market signals about their demand. It is an electronic certificate that proves to end users that a certain amount of electricity is produced from renewable energy sources.
Based on the National Energy Strategy until 2030, Hungary expects growth in renewable energy production and demand for green energy. In 2020, local production of solar and wind amounted to 2 TWh, which can be considered a solid volume at the regional level.
There will be two phases of launching the GO market at HUPX, says Djerdj Istvanfi, director of HUPX. This market will start working with a single vendor model. The Hungarian Transmission System Operator (MAVIR), as the nominated buyer of Hungarian FiT production, will be the only seller of related guarantees of origin through quarterly auctions, while the buyer position will be open to energy traders, end users and other market participants.
There is a constant growth in the volume of installed capacities in the FiT system, confirms the director of HUPX, adding that a huge increase is planned in the coming years (it will amount to about 3,000 MW of installed capacity by 2024).
Find out more at: https://serbia-energy.eu/hungary-launches-an-organized-market-for-guarantees-of-origin-in-june/
Source: Serbia Energy
