Croatia, CROPEX introduces second auction for Day ahead market, SEE Energy News
The operator of the Croatian electricity exchange announced that it will introduce the possibility of holding a second auction in the event of extreme prices on the day-ahead market starting from the trading day on Wednesday, December 7 (for the day of electricity delivery, December 8).
The introduction of the second auction allows CROPEX members to change orders in case of reaching the minimum or maximum price threshold specified in the CROPEX Product Specification. During the second auction, any member can enter or repeat orders for the Day Forward market.
The second auction is conducted in case of reaching the price threshold in at least one hour in one of the bidding zones where the second auction can be applied (from December 7, 2022, this will also apply to Croatia).
As of December 7, 2022, the price threshold will be set at +2400 euros per MWh (maximum price threshold), i.e. -150 euros per MWh (minimum price threshold).
When the price threshold is reached, another auction is launched. In this case, market participants can update their orders, which were previously entered into the system. After closing the second auction and starting a new calculation of prices and quantities, in case the price is still outside the price threshold, the new calculated results will be final.
CROPEX notes that the second auction is one of the mechanisms that warns the market about the occurrence of extreme prices, but it cannot guarantee that the maximum or minimum price will not be reached in the repeated price calculation.