The recent auction for electricity generated by the thermal power plant Šoštanj has revealed a marked increase in prices, indicative of heightened market pressures and evolving dynamics in forward electricity trading. This auction, the seventh in a series organized by Borzen in collaboration with the BSP Energy Exchange, included both future electricity production sales and the procurement of necessary emission allowances.
This particular session focused on electricity output scheduled for early 2027, offering a glimpse into anticipated forward market pricing. Holding Slovenske Elektrarne (HSE) successfully acquired all available volumes for the period from January to April 2027, securing six lots at prices between approximately 138.5 and 139.7 euros per megawatt-hour (MWh). This represents a substantial increase of nearly 30 euros/MWh compared to the previous auction held in February, where GEN-I purchased similar quantities at lower rates, indicating a significant shift in price expectations.
Additionally, emission permits associated with the electricity produced during this auction will be provided by GEN-I, which has set prices slightly above 64.5 euros per ton of CO₂ for these allowances. This aspect underscores the critical role of carbon pricing within overall generation costs. The results from this auction reflect a broader trend towards rising forward electricity prices, influenced by increasing emissions-related costs and changing market fundamentals.
