SE Market Operator presented a new platform for concluding bilateral contracts
The SE Market Operator presented a project of a new platform for concluding bilateral contracts in the electricity market, which will provide for closed and ongoing auctions.
The corresponding presentation was made on March 22, 2021, by Roman Sutchenko, Acting Director of SE Market Operator.
The platform let to have a closed auction to be announced by one initiator (buyer or seller, an unlimited number of bidders, impersonal counter bids (the buyer will not see the seller and vice versa), and determination of the winner will be done by an automatic algorithm.
In case of ongoing auctions, the platform will provide the opportunity to submit bids throughout the bidding period (currently, this time period is 2 hours), an unlimited number of participants, the possibility of concluding bilateral contracts with different periods and supply profiles. Today, the SE Market Operator plans to provide trade in three types of loads - peak, off-peak, and base.
Answering a question from an, Sutchenko noted to ExPro that at the first stage of the project the SE Market Operator will not provide trade in block nominations (for example, nighttime hours electricity schedules from the NNEGC Energoatom or block nominations of RES electricity handled for sales by the SE Guaranteed Buyer).
According to Sutchenko, a state-owned electricity generator will not be able to put up its proposals on this platform because state-owned companies are obliged to sell electricity under direct contracts in accordance with the law.
In accordance with the law, in 2019 there was a tender competition to choose an e-platform for state generators to sell their electricity, and it was won by the Ukrainian Energy Exchange (UEEX).
As for participation of state-owned generators in sales on the e-platform of the SE Market Operator, it is necessary to hold a new tender. In addition, Sutchenko noted that on the e-platform of the SE Market Operator it would not be possible to submit nominations with prices pegged solely to prices of day-ahead electricity, as all price offers will be only at fixed values.