German state aid change could alter GO premiums and boost the PPA market

Under the updated state aid guidelines for carbon cost compensation, introduced in December 2025 that added 20 more eligible sectors, the Commission altered geographical regions and their CO2 emissions factors, used to calculate the total aid amount. Out of all Member State applying state aid compensation for part of the cost incurred in the EU ETS market, Germany is the only one requiring geographical matching for the larger share of sourced renewable electricity, which has boosted prices for Austrian guarantees of origin (GOs).