During its fifth year of operation this segment has established itself as the most preferred by market participants and almost every month it sets a record in terms of volumes of electricity traded
The good results are due both to the efforts of all market participants and institutions involved in the process of liberalization and coupling of the electricity markets in the European Union and the favourable for the market legislative changes over the past years, which taken as a whole have ensured transparency, equality, non-discrimination and security for electricity market players. The volumes of electricity traded in July 2020 set an absolute record reaching 1 505 000 MWh, which is more than a two-fold increase compared to the same period in 2019 and 42% more compared to June 2020.
Liquidity
There is a clear trend towards sustainable growth regardless of the market state of affairs:
Source: IBEX EAD
After real trading was launched in January 2016, the volumes traded have marked the impressive nearly seven-fold growth to 1505 GWh in July 2020. The liquidity growth has established Day-ahead Market as the most preferred one by market participants and the clearing prices arrived at have started to be used as reference ones for the condition of the whole market.
The high level of transparency and guaranteeing equal access to the information IBEX EAD provides have sharply increased competition in the sector which proves beneficial both to consumers and electricity generators. Market players’ conduct is also changing, more attention being paid to short-term markets.
Despite the delay in economic activity during the first two quarters of 2020 as a result of the crisis provoked by the Coronavirus spread and the sharp decrease of prices of all energy resources, Day-ahead Market has remained unaffected. On the contrary, during the unprecedented period of uncertainty and lack of predictability even in the short term, market players selected this segment for trading relying that the clearing price arrived at is as fair as possible and correctly reflects the market state of affairs at any time. Therefore, the volumes traded since the beginning of 2020 have marked a steady growth, where in most months the traded volumes exceed 1 TWh.
All this keeps attracting the attention to this segment in particular not only of registered but also of new market participants.