BSP SouthPool News February 2015

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