Introduction of day-ahead market coupling and new trading opportunites for BSP members
June 19th 2018. With the implementation of implicit allocation of day-ahead cross-border capacities on the last non-coupled Slovenian electricity border, Slovenian bidding zone is from today on fully coupled and by that integrated in the single European electricity market.
Today for the first time, the day-ahead capacities on all Slovenian electricity borders have been implicitly allocated through the PCR solution for the day-ahead market, making those borders part of the single European electricity market. The latter primarily brings a benefit for end-consumers derived from a more efficient use of the power system and cross-border infrastructure as a consequence of a stronger coordination between energy markets.
Based on our experience of launching implicit auctions on the Slovenian-Italian and Slovenian-Austrian borders, we can expect that the go-live of fully integrated Slovenian bidding zone will give the Slovenian spot power market an additional liquidity boost. Considering the large volumes of available cross-zonal capacity on Slovenian – Croatian border this will further strengthen the robustness of Slovenian electricity price index SIPX.
As the price index SIPX is due to its reliability used regionally by traders in the Eastern- and South-eastern European region BSP is at this point in cooperation with EEX announcing the introduction of Power Futures with Financial Settlement. Leipzig based exchange will introduce on its pan-European power derivatives platform the cash-settled Euro denominated futures contracts based on the Slovenian electricity price index SIPX. This will enable more than 250 EEX members to hedge based on price index SIPX against future price change risks in Slovenia and broader region up to six years in advance. More details about the Slovenian Power futures are available here.