The latest auction for electricity generated by the thermal power plant Šoštanj has revealed significant price increases, indicative of heightened market pressures and evolving dynamics in forward electricity trading. This auction, the seventh organized by Borzen in collaboration with the BSP Energy Exchange, not only involved future electricity production but also the acquisition of necessary emission allowances for operational compliance.
Focused on energy output anticipated for early 2027, the auction provided critical insights into forward market pricing. Holding Slovenske Elektrarne (HSE) successfully acquired all available volumes for the January to April 2027 period, securing six lots at prices ranging from approximately 138.5 to 139.7 euros per megawatt-hour (MWh). This marks a substantial increase of nearly 30 euros/MWh compared to the previous auction in February, when GEN-I purchased similar quantities at lower rates, highlighting a distinct shift in price expectations.
In conjunction with these electricity sales, emission permits tied to the production sold will be supplied by GEN-I, which has set prices slightly above 64.5 euros per ton of CO₂ for these allowances. This aspect underscores the growing relevance of carbon pricing in shaping overall generation costs. The results from this auction reflect a broader upward trend in forward electricity prices, driven largely by escalating emissions-related costs and shifting market fundamentals.
