BSP SouthPool News February 2015
The newsletter of the BSP Regional Energy Exchange No. 1
The newsletter of the BSP Regional Energy Exchange No. 1
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<strong>BSP</strong> <strong>SouthPool</strong><br />
n w<br />
T h e n e w s l e t t e r o f t h e B S P R e g i o n a l E n e r g y E xc h a n g e N o 1 / 2 0 1 5<br />
<strong>BSP</strong> <strong>SouthPool</strong> Market Results<br />
In 2014 Day-Ahead Traded volumes<br />
grew by 8% and Intraday by 52%<br />
<strong>BSP</strong> <strong>SouthPool</strong> ushers in a new era<br />
for Slovenian Day-Ahead trading<br />
<strong>BSP</strong> <strong>SouthPool</strong> market Results<br />
Trading report January <strong>2015</strong><br />
In January <strong>2015</strong> the Day-Ahead trading volume at <strong>BSP</strong> <strong>SouthPool</strong><br />
reached 527.541,911 MWh. The average monthly price for Base<br />
product was 42,23 EUR/MWh and for Euro-peak product<br />
50,71EUR/MWh. The total traded volume at <strong>BSP</strong> <strong>SouthPool</strong> in<br />
January represented 64,93% of Slovenian market consumption.<br />
The maximum daily volume in January <strong>2015</strong> reached 20.278<br />
MWh on 09. 01. <strong>2015</strong>, the average daily volume in this period<br />
reached 17.017,481 MWh. The maximum hourly volume in<br />
th<br />
January <strong>2015</strong> reached 988 MWh on 15.01. <strong>2015</strong> for the 9 hour,<br />
the average hourly volume reached 709,062 MWh.<br />
In January <strong>2015</strong> the total amount of offered daily capacity in the<br />
direction from Slovenia to Italy was 411.546 MWh. Through<br />
implicit allocation at <strong>BSP</strong> <strong>SouthPool</strong>, 352.534,394 MWh of offered<br />
capacities were allocated, representing a 85,66% utilization of<br />
daily available transmission capacity. In the direction from Italy to<br />
Slovenia the total amount of offered daily capacity was 557.440<br />
MWh and 1.851,628 MWh were allocated.<br />
Voume (MWh)<br />
25.000<br />
20.000<br />
15.000<br />
10.000<br />
Slovenian Market Auction Prices and Volumes<br />
Delivery Day: 01. 01. <strong>2015</strong> - 31. 01. <strong>2015</strong><br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
Price (EUR/MWh)<br />
Price (EUR/MWh)<br />
70,00<br />
60,00<br />
50,00<br />
40,00<br />
30,00<br />
20,00<br />
10,00<br />
Correlation between offered and allocated quantity<br />
of daily capacatiy on SI - IT border and difference<br />
between Base price on SI and IT market in January <strong>2015</strong><br />
0,00<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31<br />
ELES > Terna Allocated Quantity ELES > Terna Non - Allocated Quantity SLO price IT Nord price<br />
18.000<br />
16.000<br />
14.000<br />
12.000<br />
10.000<br />
Trading report for <strong>BSP</strong> Intraday<br />
market for January <strong>2015</strong><br />
In the January <strong>2015</strong> the total trading volume reached 20.948,5<br />
MWh. In the same period a total volume of 12.700 MWh was<br />
concluded with block products, 7.396 MWh with hourly products<br />
and 852,5 MWh with 15 minute products.<br />
No transactions were submitted for clearing (OTC) in January<br />
<strong>2015</strong>.<br />
8.000<br />
6.000<br />
4.000<br />
2.000<br />
Volume (MWh)<br />
5.000<br />
10<br />
0<br />
1<br />
0<br />
3 5 7 9 11 13 15 17 19 21 23 25 27 29 31<br />
Transactions Volume BASE Price EURO-PEAK Price<br />
1
<strong>BSP</strong><br />
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<strong>SouthPool</strong><br />
w<br />
<strong>BSP</strong> <strong>SouthPool</strong> ushers in a new era<br />
for Slovenian Day-Ahead trading<br />
th<br />
24 <strong>February</strong> was the go-live date of the two and a half year regional energy market integration<br />
project involving 6 Transmission System Operators (ADMIE, APG, ELES, RTE, Swissgrid, TERNA)<br />
and 5 Power Exchanges (<strong>BSP</strong>, EPEX SPOT, EXAA, GME and LAGIE) engaged in trading of energy<br />
through Italy's borders. The project implements the European target model for day ahead<br />
Capacity Allocation and Congestion Management in the CSE region.<br />
Slovenia and <strong>BSP</strong> <strong>SouthPool</strong>, a project partner, seized this opportunity in order to make a big<br />
step towards fully merging with the European energy market as well as meeting the EU Internal<br />
Energy Market integration targets, securing key national strategic interests along the way.<br />
Day-ahead trading is one of the most common and<br />
widespread energy market activities with thousands of<br />
deals being made across Europe each day. Countries such<br />
as Slovenia, who were yet to fully blend into the common<br />
European energy area, had to mostly rely on complex<br />
trading processes. This basically meant that hundreds of<br />
phone calls were being made directly between traders in<br />
order to ascertain, check and negotiate the price, place<br />
orders and arrange payment. On top of all that a set of<br />
follow-up activities was required in order to arrange for<br />
transport of the purchased electricity into or out of the<br />
national grid.<br />
th<br />
With <strong>February</strong> 24 all this becomes just a thing of the past<br />
for everyone operating through the SI–IT border. From this<br />
day on access to the Slovenian day-ahead exchange<br />
market is open to traders from all over Europe, who no<br />
longer have to worry about chasing down the best price or<br />
finding the cheapest home route for their newly<br />
purchased power. Common European implicit trading<br />
algorithm deals with all of that, matching supply and<br />
demand to give all auction participants the best possible<br />
price, while ensuring that the whole process is both<br />
unbiased and transparent.<br />
“It's like online shopping for electricity but without having<br />
to sort out multiple offers and prices” says Anze Predovnik,<br />
CEO of <strong>BSP</strong> <strong>SouthPool</strong> power exchange and adds that “you<br />
simply state how much power you want to buy or sell and<br />
system makes sure you get the best price of the day, while<br />
also taking care of all the necessary arrangements for the<br />
transfer of the purchased electricity back to or out of your<br />
home grid.”<br />
For <strong>BSP</strong> <strong>SouthPool</strong>, a relatively new and small power<br />
exchange, this full integration into the common European<br />
energy market has delivered many new opportunities and<br />
perspectives. For one it is now open for business to all<br />
traders within Europe thus accessing the same market as<br />
power exchanges many times its size. But what is even of<br />
greater importance, <strong>BSP</strong> <strong>SouthPool</strong> managed to integrate<br />
in such a way that it did not merely copy protocols and<br />
solutions, but it has rather worked out a policy mix that<br />
best suits is specific situation.<br />
“If you compare Western and Northern European countries<br />
with Central and Southern ones, you can quickly see that<br />
there is no difference in the electricity we trade, but there<br />
are vast differences in the way we elect to govern and<br />
manage our internal markets, grids and relations” observes<br />
Predovnik and stresses that joining the common energy<br />
area demanded of Slovenia and <strong>BSP</strong> <strong>SouthPool</strong> to carefully<br />
negotiate conditions and devise such co-operation<br />
protocols, which would make things not merely<br />
compatible but also very practical for both Slovenian and<br />
other European countries.<br />
Sorting out the details did take 2 years, but it was 2 years<br />
well spent, delivering the most competitive trading and<br />
pricing models to Slovenian traders and consumers as well<br />
as securing Slovenia's strategic interest in terms of roles,<br />
responsibilities of its national TSO and other stakeholders<br />
in regards to the EU. This again proves that <strong>BSP</strong> <strong>SouthPool</strong><br />
knows how to take charge of key roles within large projects<br />
and leverage its know-how in order to achieve win-win<br />
results for everyone involved.<br />
“This has been a fascinating experience for us, with a steep<br />
learning curve and many lasting impressions, which can<br />
surely be of great benefit for other stakeholders that will<br />
soon embark on a similar journey such as this one when<br />
introducing same mechanisms on other Slovenian<br />
borders” concludes Anze Predovnik.<br />
2
<strong>BSP</strong><br />
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<strong>SouthPool</strong><br />
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<strong>BSP</strong> in 2014<br />
In 2014 Day-Ahead Traded volumes grew by 8%<br />
and Intraday by 52% compared to the year 2013<br />
In the year 2014 the total traded volume at <strong>BSP</strong><br />
reached 6.376.164,514 MWh, which represent<br />
53,97% of yearly Slovenian market consumption.<br />
On the day-ahead market total traded volume was<br />
6.248.399,014 MWh and on the Intraday market<br />
127.765,5 MWh. The increase of Day–Ahead<br />
volume is largely a consequence of Market<br />
Coupling on the Slovenian-Italian border; the<br />
offered capacity in direction SI-IT rose for 13,85%<br />
compared to the year 2013. Higher number of<br />
active market participant on the Intraday trading<br />
segment resulted to grow of volume by 52,13%. In<br />
the previous year 5 additional companies joined<br />
<strong>BSP</strong> and the total number of members increased to<br />
44.<br />
Volume (GWh)<br />
7.000<br />
6.000<br />
5.000<br />
4.000<br />
3.000<br />
2.000<br />
1.000<br />
0<br />
Traded volume and its share of Slovenian consumption<br />
2010 2011 2012 2013 2014<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Share of Slovenian consumption (%)<br />
Volume<br />
Share of Slovenian consumption<br />
80,00<br />
70,00<br />
Correlation between offered and allocated quantity of daily capacity on SI - IT border<br />
and difference between Base price on SI and IT market in the year 2014<br />
700.000<br />
600.000<br />
<strong>BSP</strong> Traders Party<br />
took place at Club<br />
Pergola in Portorož<br />
Price (EUR/MWh)<br />
60,00<br />
50,00<br />
40,00<br />
30,00<br />
20,00<br />
500.000<br />
400.000<br />
300.000<br />
200.000<br />
Volume (MWh)<br />
At the end of May 2014 <strong>BSP</strong><br />
organized a Traders Party in<br />
Portorož, on the Slovenian coast.<br />
In the backdrop of events guests<br />
had the chance to talk in an<br />
informal setting and get to know<br />
each other on a more personal<br />
level.<br />
10,00<br />
0,00<br />
January <strong>February</strong> March April May June July August September October November December<br />
Trading Volume Allocated ATC (SI→IT) Non-Allocated ATC (SI→IT) SI Price IT Nord Price<br />
Slovenian Intraday Market Volumes<br />
100.000<br />
0<br />
Training courses<br />
and workshops<br />
organized by <strong>BSP</strong><br />
<strong>SouthPool</strong> in 2014<br />
Volume (MWh)<br />
25.000<br />
20.000<br />
15.000<br />
10.000<br />
5.000<br />
0<br />
Jan. 2014 Feb. 2014 March 2014 April 2014 May 2014 June 2014 July 2014 Aug. 2014 Sept. 2014 Oct. 2014 Nov. 2014 Dec. 2014<br />
Block Volume Hourly Volume Fifteen minute Volume<br />
Total Volume: 127.765,5 MWh Block Volume: 93.908 MWh Hourly Volume: 30.552 MWh Fifteen minute Volume: 3.305,5 MWh<br />
In the year 2014 <strong>BSP</strong> organized 3<br />
workshops. The Exchange trader<br />
training course was organized for<br />
participants from Borzen, Hep<br />
and also for individual<br />
participants. On these courses<br />
participants obtain knowledge<br />
about auctions and continuous<br />
trading, supply and demand<br />
modelling and information on<br />
usage trading platforms (Euro<br />
market and ComTrader).<br />
Participants also get a licence to<br />
trade at <strong>BSP</strong>.<br />
3
<strong>BSP</strong><br />
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<strong>SouthPool</strong><br />
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Training courses and workshops in <strong>2015</strong><br />
In <strong>2015</strong> <strong>BSP</strong> <strong>SouthPool</strong> offers Training courses and<br />
Workshops for traders and other professionals who would<br />
like to obtain new knowledge. We have prepared, in the<br />
following section, outlines of the topics presented at the<br />
workshops, but we remain flexible to suit applicants'<br />
further inquiries. Some of the most interesting workshops<br />
are:<br />
Exchange Trader Training Course – focusing on Day-<br />
Ahead and intraday Markets, Trading Rules and Auction<br />
Trading.<br />
Trainings courses will take place on the:<br />
th<br />
9 April <strong>2015</strong><br />
th<br />
4 June <strong>2015</strong><br />
th<br />
10 September <strong>2015</strong><br />
th<br />
5 December <strong>2015</strong><br />
SEE (South-Eastern European) Wholesale Electricity<br />
Markets Workshop– at this workshop participant get<br />
further insight into SEE Electricity markets, energy flows in<br />
the SEE region, establishment of balance responsibilities,<br />
scheduling systems in SEE countries, etc.<br />
Tailor-made Workshop for Companies – this workshop is<br />
prepared for companies outside of the electricity industry,<br />
which would like to learn about trading, market structure,<br />
electricity prices and the ways in which electricity<br />
contracts are concluded.<br />
All information about Training Courses and Workshop is<br />
available on our web page www.bsp-southpool.com.<br />
The newsletter is published<br />
by <strong>BSP</strong> Regional Energy Exchange LLC.<br />
Editor in Chief<br />
Anže Predovnik<br />
Completed in <strong>February</strong> <strong>2015</strong>, No 1/<strong>2015</strong><br />
Address: <strong>BSP</strong> Regional Energy Exchange LLC,<br />
Dunajska 156, SI-1000 Ljubljana, Slovenia<br />
Telephone number: + 386 1 620 76 76<br />
Fax number: + 386 1 620 76 77<br />
Website: www.bsp-southpool.com<br />
E-mail: info@bsp-southpool.com<br />
Copyright © 2008 - <strong>2015</strong> – <strong>BSP</strong> d.o.o.<br />
All rights reserved<br />
<strong>BSP</strong> Regional Energy Exchange<br />
Your energy choice.<br />
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