🌍 Guarantees of Origin — Building a Market Maker

In this episode of Soldera Markets, Stenver, Al and Ollie from Soldera chat with Koen Andriessen and Chris Myers from Faraday Trading, about what it takes to build a Market Making (MM) operation in the current Guarantee of Origin (GO) market.

This episode delves into:

→ How Faraday transitioned from financial derivatives to GO market making 📊 → Their passive approach: waiting for counterparties rather than chasing trades→ Why they focus on AIB grid-connected certificates for sharper pricing→ How constant trading volume creates effective risk management→ How Faraday views the market: learn about the MM approach to risk and strategy.

Faraday’s Origin Story:

→ Three co-founders with extensive careers in financial market making → Started January 2024 as their first entrepreneurial venture together → Saw GO market as less developed compared to efficient financial markets → Drew parallels to financial products that became liquid over time → Brought MM expertise to a space dominated by back-to-back trading

Soldera Auctions:

→ Learn how Faraday and Soldera work well together → Explore how market makers access quality GO supply efficiently → Understand how streamlined sourcing strengthens MM liquidity provision

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As Q3 unfolds, we analyze the evolving dynamics shaping the European Guarantees of Origin (GO) market while reviewing our Q2 predictions.This episode is based on our full in-app quarterly report available to Soldera members. You can also listen to this episode your favourite podcast platform here.

Looking Back at Q2 and Assessing Our Predictions

→ Market experienced prolonged decline before dramatic recovery in final weeks 📉→ Prices bottomed at 40 cents before recovering to 80 cents, validating under-supply predictions→ German June disclosure deadline created delayed market activity separate from March patterns 🇩🇪

We Need To Talk About Norway…

→ Q2 Episode correction: Total Norwegian GO consumption actually decreased year-over-year despite record cancellations. → Problematic government behaviour impacting the GO market intensifies 🇳🇴

Critical Supply Dynamics

→ Europe producing 8-9% less renewable energy than last year, creating 50 TWh deficit → Nordic hydro reserves normalizing after record-high levels, hot summer predictions threatening further decline ☀️→ 2024 vintage GOs now in end-of-life phase as traders rotate inventory 🔄

Demand Outlook and Regulatory Shifts

→ CSRD scope reduction from 50,000 to 10,000 companies but targeting largest emitters 📋→ Hydrogen RFNBO requirement relaxation lobbying could unlock hundreds of TWh demand → Corporate sustainability commitments remaining strong despite regulatory changes → Forward curve premiums moderating as regulatory uncertainty impacts long-term pricing 📈

Strategic Market Considerations

→ Forward markets showing 50% premiums for 2026 vintage as utilities hedge exposure 📊→ Record-low oversupply reduction expected to significantly impact market dynamics→ New government auctions emerging while market fragmentation challenges persist 🆕→ Cross-border virtual GO accounts on the horizon at Soldera. Watch this space …

As always, stay connected with our quarterly market outlooks to track the GO landscape. Catch our next outlook in Q4!

#GuaranteesOfOrigin #RenewableEnergy #EnergyMarkets #Renewables

As we enter Q2, we examine the key factors influencing the European Guarantees of Origin (GO) market while evaluating our Q1 predictions.

Looking Back at Q1 and Assessing Our Predictions

→ Most predictions materialized, especially regarding March 31st disclosure deadline activity→ Record Norwegian cancellations show market progress with 22 TWh more domestic consumption 🇳🇴→ Pricing remained sideways despite high volumes and record cancellations→ Geopolitical factors and defense priorities temporarily overshadowing sustainability initiatives

Critical Supply Dynamics

→ 47 TWh renewable underproduction silently reducing market oversupply 📉→ Nordic hydro reservoir levels have less market impact than commonly believed→ Rapid value decline of 2024 GOs problematic for remaining holders→ Germany's June deadline creates final window for 2024 GO consumption 🇩🇪

Demand Outlook and Market Sentiment

→ Forward prices historically low at €1+ despite continued interest→ CSRD scope reduction from 50,000 to 10,000 companies impacting price modeling 📋→ Potential hydrogen regulation relaxation could significantly boost GO demand→ Voluntary GO adoption in Iceland signals sustainable demand growth

Strategic Considerations

→ Why some people are considering leaning toward 30% forward volume hedging 📊→ Market's contango state reflects confidence in long-term improvement→ Country-specific vintage rules create arbitrage opportunities in Estonia and Italy→ Energy-intensive industry incentives creating new demand sources across Europe ⚙️

Stay informed with our quarterly market updates to navigate the evolving GO market landscape!

#GuaranteesOfOrigin #RenewableEnergy #EnergyMarkets #Sustainability

In this episode, Fulbright Scholar Kevin Lu interviews Stenver Jerkku, founder and CEO of Soldera, as part of his research into Estonia's climate tech ecosystem. After working in content design and strategy for climatetech at Salesforce and exploring climate innovation across 21 countries, Kevin is now researching at Tallinn University of Technology where he's examining how founders build successful climate startups in Estonia.

This interview explores:

→ How Estonian entrepreneurs think globally from day one→ Soldera's founding journey and pivot from carbon credits to renewable energy→ Navigating fundraising as a climate tech company in Estonia→ When founders should (or shouldn't) pursue venture capital→ How Soldera leverages AI to automate compliance work→ How EU regulations create business opportunities→ Finding balance between supportive and restrictive policies→ What Estonia could improve to better support climate startups

Key insights include:

→ Climate tech founders need laser focus rather than pursuing multiple opportunities→ Estonia's small market forces founders to think internationally from day one→ Taking VC means accepting responsibility to build a billion-dollar business→ Estonia's fast company formation and digital services are models for Europe→ Maintaining stable business policies helps Estonia attract international founders→ Community-building events could strengthen Estonia's climate tech ecosystem

#ClimateTech #Estonia #VentureCapital

Join us with Mary Polovtseva, GO expert and renewable policy analyst with Veyt, as we explore the evolving European Guarantees of Origin market.

Topics covered:

→ Policy vs market analysis roles in the GO space→ Impact of geopolitics on EU energy transition→ CSRD's influence on GO demand→ EU's Omnibus package reducing CSRD scope by 80%→ Norway's evolving position on GOs→ Granularity debates (monthly vs hourly matching)→ Clean Industrial Deal & public procurement→ GOs as revenue for renewable producers→ Implementation challenges across EU states→ Green Claims Directive and eco-labels

Key insights:

→ EU decarbonization targets remain despite competing priorities→ Companies adopting dual reporting for scope 2 emissions→ Potential reduction from 50,000 to 10,000 CSRD companies→ Only renewable hydrogen regulations currently push hourly granularity→ Public procurement (40% of EU GDP) could drive GO demand→ GOs can represent up to 7% of operational income for producers→ National implementation varies widely across member states→ Clean Industrial Deal merges decarbonization with competitiveness

#RenewableEnergy #Sustainability #EnergyPolicy

Soldera Markets is delighted to host Tony Tiyou, CEO of Renewables in Africa, to explore the growing African renewable energy landscape.

This Episode Covers:

→ The evolving African renewable energy certificates (RECs) market→ Growth patterns showing doubling volumes year-on-year→ How only 17 of 54 African countries currently participate in I-REC systems→ Pricing differences between African markets ($1-5/MWh) versus other regions→ The challenges of grid integration for large-scale renewable projects

Key Insights:

→ African I-REC volumes reaching 3.5 million MWh in 2024→ The untapped potential in distributed energy resources→ How African renewables have lower default rates than comparable U.S. investments→ The critical need for international capital in project development→ Why solar makes economic sense beyond environmental benefits

Special Focus on African Energy Development:→ The economic impact of unreliable power on businesses→ How solar adoption is growing rapidly without government subsidies→ The push for local manufacturing of renewable components→ Regional integration through AfCFTA and pan-African energy initiatives→ The continent's vast solar potential (currently just 2% of global capacity)

#RenewableEnergy #AfricanEnergy #CleanEnergy #SolarPower #IRecs #EnergyAccess #AfricanDevelopment

Soldera Markets is delighted to host Taavi Veskimägi, former CEO of Estonia's TSO Elering, to take an in-depth look at the Baltic energy transition.This Episode Covers:

→ Estonia's journey from oil shale dependency to renewable energy leadership→ The recent 2025 Baltic grid desynchronization from Russia→ How Guarantees of Origin (GOs) drive market-based renewable adoption→ The critical role of energy independence in national security→ Green hydrogen's future in the Baltic energy mix

Key Insights:

→ Estonia's early adoption of digital solutions for energy trading→ The impact of EU carbon prices on traditional energy sources→ Balancing market competitiveness with sustainability goals→ Why interconnectors are crucial for price stability→ The challenges and opportunities in frequency market development

Special Focus on European Energy Security:→ How Estonia prepared for grid resilience a decade ahead of Western Europe→ The importance of maintaining a unified European energy market→ Balancing regulation with innovation in clean tech

#EnergyTransition #CleanEnergy #GridResilience #RenewableEnergy #Estonia #Baltics

As Q1 kicks into gear, we share our perspectives on the dynamics most likely to shape the European Guarantees of Origin (GO) market.

This Episode Covers:

* How record-high Nordic hydro reservoirs are creating potential market oversupply conditions 💧

* Why the new CSRD reporting requirements will impact companies with over 500 employees 📋

* What makes the March 30th disclosure deadline crucial for Q1 market movements ⏰

* How German elections could influence Europe's largest GO importing market 🇪🇺

* What forward trading patterns reveal about long-term price confidence 📈

Understanding Market Dynamics:

* Despite current oversupply, why supply levels remain lower than early 2024 levels 📉

* How mandatory corporate sustainability audits are reshaping EU company practices 🏢

* Why local sourcing requirements are becoming essential, particularly for German subsidies 🗺️

* How RED3 directive makes it easier for small-scale renewable producers to participate 🌱

* What new industry support programs mean for energy-intensive sectors across Europe ⚡

Stay tuned for our quarterly market updates to keep your finger on the pulse of the GO market!

#GuaranteesOfOrigin #RenewableEnergy #EnergyMarkets #Sustainability

🌍 Soldera Market Discussions: Understanding RE100's Credible Claims Guidelines

Join Al, Ollie & Stenver for a detailed exploration of RE100's framework for credible renewable energy claims.

📹This episode covers:

→ What makes a renewable energy claim credible under RE100 standards 📊→ The six key criteria for valid claims→ Geographic market boundaries and their implications→ How vintage limitations affect renewable energy certification→ The importance of attribute aggregation

⚡Key topics we discuss:

→ Why countries like Poland remain outside the AIB system→ The Costa Rica paradox of 99% renewable grid→ How market boundaries affect liquidity→ The special requirements for hydro and biomass certification→ The 15-year age limit rule and its exceptions

💡Notable insights include:

→ Why grid connection alone isn't enough for cross-border trades→ How the UK's post-Brexit isolation affects the market→ The challenges of matching consumption periods→ Why tracking matters even in nearly 100% renewable markets→ The importance of preventing attribute unbundling

Fascinated by renewables, renewable assets and renewable market frameworks? Subscribe to stay informed on pressing developments!

🌍 Learn to Maximize Your GO Profits in Current Markets: Join Stenver Jerkku as we analyze the dramatic GO price shifts from €8-10/MWh to €0.40-0.50/MWh and explore why forward contracts are outperforming spot sales. We'll cover market trends, Norwegian reservoir impacts, Italian auction effects, and proven strategies including volume aggregation and automated trading. Discover why ignoring GO optimization could mean missing out on 5% potential revenue. Don't forget to like, comment, and subscribe to stay updated on all things GO! #RenewableEnergy #GuaranteesOfOrigin #EnergyTrading #CleanEnergy