The recent completion of the sixth public auction by Borzen, in partnership with the energy exchange operator BSP, has significant implications for Slovenia’s energy market. This auction, focused on electricity from the Šoštanj thermal power plant, represents a crucial step in securing baseload supply for the first quarter of 2027, specifically from January 1 to March 31.
This auction saw participation from four bidders vying for six distinct lots, each corresponding to a specific volume of electricity designated for delivery. The results indicate a competitive landscape, with HSE successfully acquiring four lots, while GEN-I and Dynasty Power Europe each obtained one lot. The winning bids for electricity were positioned between €103.20 and €105.42 per megawatt-hour (MWh), reflecting current market dynamics.
In conjunction with the electricity auction, a separate initiative was conducted to auction off emission allowances essential for the operational requirements of TPP Šoštanj during the period from February to April 2027. This auction attracted six companies, highlighting a robust interest in compliance with environmental regulations. Notably, GEN-I emerged as the lowest bidder on three lots, while Trafigura PTE secured two lots, and HSE won one lot. The clearing prices for these allowances were tightly clustered between €72.63 and €72.78 per European Union Allowance (EUA).
The significance of these emissions allowances cannot be overstated; under the framework of the EU Emissions Trading System (ETS), each EUA permits its holder to emit one ton of CO₂ or its equivalent in greenhouse gases. This regulatory mechanism is increasingly becoming a critical operational cost driver for coal-fired electricity generation, influencing strategic decisions within the sector.
This dual auction process not only underscores Slovenia’s ongoing efforts to balance energy production with regulatory compliance but also reflects broader trends within Southeast Europe’s energy landscape as it navigates towards more sustainable practices amid evolving market conditions.
