Dramatic shift in the European renewable electricity market

01 June 2015 – The demand for renewable electricity, documented with Guarantees of Origin, continues to grow steeply in 2015. The 2015 first quarter numbers show a growth of 22 TWh compared to Q1 in 2014 – equaling an increase of 15%. The total demand for Q1 reached a record volume of 165 TWh, states the statistics from the Association of Issuing Bodies (AIB).

The development in 2015 follows a record-breaking 2014, during which the market experienced a 26.5 % growth and an all-time high of 312 TWh in demand for renewable electricity. Moreover, for the first time since 2011 there was a real balance between supply and demand.

dramatic shift in the renewable electricity market

A falling supply curve Q1

“What makes the continued demand growth in 2015 even more significant is a parallel development of a falling supply curve. Market supply – the issuance of Guarantees of Origin, declined by nearly 30% compared to Q1 in 2014” says Tom Lindberg. “This potentially opens up a significant deficit in the market place. Although first quarter statistics always need to be viewed with some caution, we observe that the market has responded by more than doubling the wholesale price of standard hydro in the same period.”

The European demand for renewable electricity documented by Guarantees of Origin now constitute more than 10% of all electricity consumption in Europe (ca. 3,300 TWh) and one third of all electricity from renewable sources in Europe (ca. 900 TWh).