June 21, 2024
Owner's Engineer banner
HomeSEE Energy NewsRomania: Sharp drop in volume at OPCOM DAM

Romania: Sharp drop in volume at OPCOM DAM

Supported byClarion Energy banner

The volume of electricity trading on the day-ahead market (DAM) in Bucharest decreased significantly in February 2023, according to data from the stock exchange operator OPCOM, with DAM’s share covering just over one-third of the country’s total consumption, compared to around 50 percent of what it has been up to now.

In February, only 1.55 TWh of electricity was traded on DAM, which means that the share of DAM was reduced to 36 percent of electricity consumption in the country.

By comparison, DAM’s share in February 2022 was almost 50 percent, which equates to a trade volume of 2.28 TWh. This means that the volume of transactions decreased by 26 percent on an annual basis.

Supported byHerran banner

When it comes to the value of transactions, the drop is even greater, as a result of the drop in the price of electricity on the market. So, if in February 2022, OPCOM reported a transaction value of 2.16 billion leva (440 million euros), in February 2023, half the value was recorded – only 1.07 billion leva (219 million euros).

This is due to the drop in the average price in February 2023 to 699 leva (142.5 euros) per MWh, compared to 942 leva (188.5 euros) per MWh a year ago.

Compared to the previous month, January 2023, the volume of transactions on DAM was almost 18 percent lower, and their value was 24 percent lower. Compared to January 2023, the price in February was slightly higher, by about 4 percent.

The decrease in the share of DAM is most likely related to regulatory measures related to electricity transactions.

It also coincides with a decline in spending. Thus, in 2023, part of the consumption in Romania is covered through a centralized procurement mechanism through which a part of the producer (without renewable sources and cogeneration plants) sells electricity at a fixed price to end-consumer suppliers and transmission and distribution operators.

This regulation has effects on all platforms on OPCOM. Data from the stock exchange operator show that not a single transaction for futures on the markets for bilateral contracts was realized in February.

Sign up for updates & special reports

Supported byElevatePR Digital banner

RELATED ARTICLES

Supported byOwner's Engineer
Supported by
Supported byClarion Energy
Supported by
error: Content is protected !!