The Role of Regulations in Driving GO Demand

GOs are certificates that verify renewable energy production and build trust between consumers and producers — and the European GO market stands at a turning point. Despite current low prices, the market is projected to grow sixfold to €24 billion by 2030. With sustainability goals everywhere, from governments to big corporations, the GO market has been capturing interest as it readies for expansion. But beneath the surface-level excitement, what really underpins this market’s growth potential?

Regulation will cause GO prices to increase

Regulatory moves are what truly turbocharge GO demand. The EU created GOs as a tool to meet policy goals, incentivising private-sector renewable investment alongside government funding, a type of ‘de-risking’. This is because, by 2030, EU directives aim for 42.5% of energy to come from renewables — which absolutely requires GO mandates to drive demand, creating revenue incentives to make renewable energy development more investable. However, a large number of existing renewable producers started to receive GOs, and the market was flooded with supply. So, some consider a return to the GO price heights of 2022 to be unreachable without significant regulatory development.

Regulation is picking up again: the EU’s RED III directive now requires GOs for green hydrogen verification. With green hydrogen absolutely poised to transform heavy industries, this shift alone could make GOs indispensable, as green hydrogen is the most sought after type. On top of that, other energy-intensive sectors that receive scrutiny, such as AI and data centers, will definitely push demand for GOs even further. Big names in tech like Sam Altman of OpenAI are focused on energy challenges as they face mounting environmental critiques. RED III also pushes for hourly GOs, a crucial step forward in the efficacy and transparency of GO markets - expected also to allow producers to command premium prices during peak renewable demand, potentially bumping up GO sales revenue by 33%.
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Additionally, the Corporate Sustainability Reporting Directive (CSRD) brings 50,000 companies into mandatory sustainability reporting from 2024—five times more than current requirements. The Corporate Sustainability Due Diligence Directive (CSDDD) goes further, requiring companies to address environmental impact throughout their “chain of activities”, creating cascade effects as large companies pressure their suppliers to verify renewable energy use.

Beyond Europe, the global Renewable Energy Certificate (REC) market is growing fast, with estimates projecting a $111 billion market by 2030. Many big companies—Google, Microsoft, Apple, Nike—are committing to renewables in the EU, reflecting the inevitability of regulatory and corporate pressure to go green. Soldera is at the forefront of these trends, offering AI-powered tools to producers that streamline GO management and empower producers to capitalize on these booming markets.

To conclude —GOs and RECs are here to stay.

This regulatory momentum & corporate preparation has been building for years and it won’t turn back now. To keep renewable investment attractive, regulators need to force corporations to use GOs, and hourly GO mandates are the immediate move here. The market is also about to encounter a real test in meeting high-demand, energy intensive sectors like green hydrogen and AI. GOs have therefore now evolved from merely “nice-to-have” to key tools in meeting sustainability goals — so, we believe there’s a significant likelihood that prices will rise.

Whilst this will be absolutely amazing for GO sales in the future, GOs must be sold within 12 months. Therefore, for producers, the priorities are clear: register for GO issuance early—you can't get certificates for past production. It’s also wise for producers to sell GOs frequently and at competitive rates. Soldera helps producers maximize value by aggregating volumes across multiple sellers, unlocking better deals through collective bargaining power. We handle all administrative tasks by 95%  – so you can focus on core operations. For a hassle-free approach, check out our site and blog to get started.