It is important to note that the National GOs, which were issued in Hungary for producers that receive financial assistance and not tradable internationally, have been phased out of the market.

HU auction 2/2023 - Auction results

The traded prices for EECS GOs are generally in line with the 

, except for the price of Solar 2022, which increases its lead by 18,5% in the auction results (+99 Eurocents/MWh compared to the OTC prices of 5.40 Euros/MWh). A comparison with the previous auction shows that there was a price drop of around 29% (to around 5.20 Euros/MWh) for the VWAP of Hydro and Wind, while the Solar price performed better with only a -15% drop (to around 6.39 Euros/MWh). 

An explanation for this difference in the prices can be found in the increased demand for Solar produced in November 2022 (representing more than half of the total supply) compared to Wind and Hydro produced in November 2022 (representing around 32% of the total supply). More specifically, the demand for Solar was two times higher than the demand for Hydro and Wind and about six times higher than the demand for Biomass, showing a general preference of the consumers towards Solar GOs.

It is also important to note here that a low number of participating bidders (3) and the high demand for the Solar GOs means that there are bids that individually claim a significant chunk of the offered supply. In this situation, a bid that offers a buying price that is way higher than what the rest of the buyers offer can make the VWAP for a specific product significantly diverge from the VWAP for other products. This situation could explain why there is such an immense divergence in the price for Solar produced in November 2022.

HU auction 2/2023 - Historical results

The total traded quantity progressively decreases since September and in February the overall trading activity was around 100 GWh, 47% less than the activity of January (190 GWh) and around 90% less than the trading activity of September (around 1,100 GWh).

Overall, trading activity continues to decrease steadily from September and prices keep on dropping. In this environment of low liquidity, individual bids can play an important role in shaping the final prices, therefore explaining significant divergence of the prices of different technologies.

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HUPX (Hungarian Power Exchange Ltd), the appointed operator for the Hungarian GOs market by MEKH (Hungarian Energy & Utilities Regulatory Agency), held its sixth pan-European auction for Guarantees of Origin (GOs) on 21 February 2023. This is the sixth such auction in history offering EECS GOs (produced from May 2022 to November 2022).

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