BSP SouthPool
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The newsletter of the BSP Regional Energy Exchange No 13 Edelweiss Energia: “Final customers, producers and traders will benefit from the existence of a regulated, non-discriminatory and more and more liquid power Exchange like BSP Southpool” Market Coupling on the Slovenian – Italian Border starting in January 2011 New Members of BSP SouthPool are Elektro Gorenjska and Edelweiss Energia
Trading volumes at BSP SouthPool Last month ends with a trading volume record After start up of Auction Trading mid March BSP SouthPool records highest volume of trading in October. Total volume reached 26.009 MWh which represent 2,57 percent of Slovenian market consumption. In comparison with the previous month trading volume in October increased for 35,3 percent. Maximum daily volume in October reached 1.130 MWh on 22.10.2010, average daily volume in October reached 839 MWh. Maximum hourly volume in October reached 84 MWh on 28.10.2010 for 12th hour, average hourly volume in October reached 35 MWh.
Trading report June - October 2010 Total volume of concluded transactions in the period from June to October 2010 reached 113.482 MWh. The volume of entered orders in aforementioned period reached 1.130.270 MWh. The highest monthly volume of trades occurred in October at 26.009 MWh with 235.706 MWh of entered orders, following June at 24.511 MWh with 177.537 MWh of entered orders, July at 24.223 MWh with 233.925 MWh of entered orders, August at 19.517 MWh with 241.659 MWh of entered orders and September at 19.222 MWh with 241.443 MWh of entered orders. In June the average monthly price for Base reached 43,81 EUR/MWh and for Euro-peak 52,04 EUR/MWh.
In July the average monthly price for Base reached 48,93 EUR/MWh and for Euro-peak 55,94 EUR/MWh. In August the average monthly price for Base reached 41,24 EUR/MWh and for Euro-peak 47,30 EUR/MWh. In September the average monthly price for Base reached 46,14 EUR/MWh and for Euro-peak 52,36 EUR/MWh. In October the average monthly price for Base reached 51,98 EUR/MWh and for Euro-peak 58,45 EUR/MWh. In the period from June to October 2010 all trades were concluded on the Slovenian hourly auction. There were no concluded transactions in the Serbian market and there were no transactions submitted for clearing (OTC) in the aforementioned period.
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BSP SouthPool
n w Edelweiss Energia: “Final customers, producers and traders will benefit from the existence of a regulated, non-discriminatory and more and more liquid power Exchange like BSP Southpool” Interview with Matteo Calvi, Dr. Ing., Chief Executive Officer at Edelweiss Energia S.p.A., international trading company acting on a regular basis on the main regulated markets and Over-The-Counter, as an independent trader.
Edelweiss Energia as a company recently became a member of BSP SouthPool. In your opinion, what is the role and the meaning of the power exchange in the SEE region? I believe that the development of the power exchange is one of the key-factors for the growth of liberalized markets. BSP Southpool is contributing significantly in increasing the level of transparency and liquidity of the whole SEE region. Final customers, producers and traders like Edelweiss Energia will benefit from the existence of a regulated, non-discriminatory and more and more liquid power Exchange like BSP Southpool. There is another positive aspect to take into account: all these different categories of players will benefit at the same time creating a win-win situation for everyone, as well as the electrical system. Our environment will benefit as well as inefficient dispatching of power plants due to non transparent and inefficient pricing will be significantly reduced. Furthermore, investors do like a clean environment and definitely a power Exchange contributes to helping trust in the power market. How would you evaluate the current situation and recent development on the Slovenian energy market comparing the European energy markets? I started trading Slovenia in 2001, buying power at the SlovenianItalian border. The Slovenian market has changed significantly since then. Like Italy, Slovenia has moved quickly from its status of as I would call it an “exotic market” to a more structured and sophisticated level. I have no doubt that we will be talking soon of a pan-European market and Slovenia, like Italy, it will be a part of this huge market. Market coupling is a highlydesirable frame work which requires strong and reliable power exchanges in each market hub.
What are the benefits and opportunities of you being a member and actively participating at BSP SouthPool? Edelweiss Energia is putting a lot of effort into developing market access outside Italy. France, Switzerland and Slovenia have been our first International focus since 2007. We have recently completed all the application procedures in Greece and Austria and we are now targeting Romania, Bulgaria and the Balkan markets. Each trader with some experience in the SEE area knows the importance of having a wide-presence and a reliable and consistent market access in each country. We like transparency very much and we have found a very reliable and efficient market to work with in BSP Southpool. What are the main strategic goals of your company in the future? We will consolidate our market share in the Italian power and environmental certificates market. Proprietary trading and portfolio management services for local municipalities, re-sellers and power producers are pillars in our development strategy.
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Market Coupling on the Slovenian – Italian Border starting in January 2011 »Market Coupling follow up – October 2010« After establishment and great progress of Market Coupling Work Group (WG) involving parties from from Italian and Slovenian Ministries, Regulators, TSOs, MOs and PXs the Memorandum of Understanding between Ministry of the Economy of the Republic of Slovenia and The Ministry of Economic Development of the Italian Republic was signed on 27th August 2010 in Ljubljana by the Slovenian minister for Economy Ms Darja Radić, M. Sc., and the Italian Ambassador in Ljubljana, H.E. Mr. Alessandro Pietromarchi. The agreement's aim is “to ensure institutional support to the process aiming to allocate cross border capacity on Italian-Slovenian border through implicit method by organizing a day-ahead market coupling on the Slovenian-Italian border.” Furthermore the AEEG (Resolution ARG/Elt 143/10, of 13th September 2010) and AGEN-RS (Approval n. 141-4/2010-3/EE-03, of 13th October 2010) approved the draft of the Master Agreement that establishes a reference frame for the identification of main features regarding the ITA-SI MC. Market Coupling enables by combining energy and capacity trading, traders to lower their operating costs and trading risks, improvement of market transparency and provides more efficient crossborder congestion management with respect to trading energy and capacity separately. Official start up of the Market Coupling is planned for 1st January 2011.
New Members of BSP SouthPool are Elektro Gorenjska and Edelweiss Energia In June Elektro Gorenjska d.d. became a member of BSP SouthPool The company is 29th member of BSP SouthPool and is not market participant on any market so far.
In July Edelweiss Energia S.p.A. decided to upgrade its membership on BSP SouthPool with market and clearing participations The company will henceforth – as the 22nd participant of the Slovenian electricity dayahead market – actively participate in Slovenian market. BSP regional energy exchange has 29 members at the moment: B-P Energia Szolgalatato, Borzen, Danske commodities, Edelweiss Energia, Electrabel, Elektro Slovenija, Edison Trading, EGL, Elektro Gorenjska, Elektro Celje, Elektro Ljubljana, Elektro Maribor, Elektro Primorska, Elektro prodaja, E.ON Energy Trading, Enel Trading, Energy financing team, EVN Trading South East Europe, Ezpada, Gen-I, Holding Slovenske elektrarne, IMC Energy Trading , Interenergo, Petrol energetika, Rudnap Group, Statkraft Markets, Termoelektrarna toplarna Ljubljana, Tradition Financial Services (TFS) and Verbund.
The newsletter is published by BSP Regional Energy Exchange LLC. Editor in Chief Gorazd Ažman Completed in October 2010, No 13/2010 Address: BSP Regional Energy Exchange LLC, Dunajska 128a, 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 Copyright © 2008 – BSP d.o.o. - All rights reserved
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