GO prices in Italian auction rise above OTC prices

Tuesday, 22 January 2019

The GSE has announced the outcome of the auction session on 21 January 2019 for the assignment of the Guarantees of Origin (GOs). The GOs auctioned by the GSE are related to production from January to December 2018.

The median auction prices for Wind, Biomass and Hydro GOs were 45 Eurocents above current Over-The-Counter (OTC) prices for EU wind, 35 Eurocents above generic EU Biomass and 21.5 above generic Nordic Hydro GOs, respectively. Our market information indicates that there was substantially more demand for Hydro and Wind GOs (total bid volume) than what was offered in the auction held by GSE. This signals that there might be room for a price increase as outlined in our previous weekly market reports.

However, auction prices decreased by an average 8% from the previous auction on 20 December 2018, with Hydro dropping the most by 15% from previous month. The next GO auction by GSE is scheduled for the 20 March 2019.

Source: GSE