Cross-border electricty trading

Since the Slovenian electricity market is a part of the European common market, its participants can trade across the borders. In the case of cross-border trade, in has to be taken into account that the capacity of the interconnectors is limited. Therefore, market participants must obtain the rights to the cross-border transmission capacities. There are two mechanisms to obtain these capacities – explicit and implicit auctions. On explicit auctions participants bid only for the transmission (transport) capacities (measured in MW), while the commodity (energy) has to be bought separately. On implicit auctions participants at the same time bid for commodity and transport capacities.

 

Since the Slovenian electricity market is a part of the European common market, its participants can also be used the mechanisms that are not available in our market.  Such example in trading on the future (derivatives) markets, where deals are concluded with derivative financial instrument, such as futures contracts and options. This type of trading that takes place for a few years ahead and is mainly used as an instrument to hedge risk. 

 

Meta information
Display date
09.01.2015 11:54
Modified date
15.11.2017 12:24
Tags
wholesale market cross border exchanges
Area
Energy service providers Electricity