Prices subdued by turnout at first ‘disruption plan’ auction

Yesterday’s first local “disruption management” auction, offering industrial enterprises late-night capacity amounts for energy cost savings, produced surprises, strong demand, subdued prices as a result of the turnout, and dissatisfaction for a large number of participants.

Strong competition between bidders for one of the session’s two auctions, offering short-term agreements, meant that overall demand was not met. Auction prices were also driven down to extremely low levels.

Total demand for the auction offering short-term agreements exceeded the 500 MW total offered by 535.4 MW. The bids submitted by just ten of 26 industrial enterprises that participated were satisfied. These were: Aluminium of Greece (285.1 MW); Halyvourgiki (70.4 MW); Hellenic Halyvourgia (Aspropyrgos plant 56 MW and Volos units 49 MW and 8.5 MW); AGET (Volos 16.5 MW and Milaki 8.2 MW); Fibran (5.1 MW); Titan (1.2 MW for two facilities).

Industrial enterprises such as the entire Viohalko group, cement producer Halyps, the textile industry Epilektos, glassware producer Yioula, and Motor Oil Hellas were left out, while the main power utility PPC and its mines did not submit any bids, despite previous concerns that it would. The auction price for short-term agreements dropped to 10,000 euros per MWh.

As for the longer-term “disruption plan” agreements, the bids of most of the 23 participants were satisfied. Titana, Viohalko (Sovel, Sidenor, Solk), AGET, Hellenic Halyvourgia, Halyvourgiki, ELPE (Hellenic Petroleum), Motor Oil, Halyps, Epilektos, MEL (Macedonian Paper Mills), and Yioula all secured capacities. PPC’s five mines and Fibran did not participate.

Auction prices for longer-term “disruption plan” agreements reached a satisfactory level of of 30,000 euros per MWh. Sovel acquired the biggest amount, measuring 110.6 MW. Total demand exceeed the capacity offered by 258.1 MW.

The “disruption management” plan enables energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by the operator.