EMI’s Analysis on IBEX Extremely Low Prices in the First Weeks of the State of Emergency

Following the analysis of EMI, Institute for energy management, two features shaped the response of Bulgarian day-ahead electricity market (DAM) to COVID-19 quarantine: volatility and a 31% drop in electricity prices. Electricity producers whose main revenue is generated by energy supplied at DAM will be the victims of such low price.

RES producers with a capacity exceeding 1 MW will also be affected by the low electricity prices. The energy they generate is sold at the exchange too and they are granted premiums reflecting the difference between EWRC reference market prices differentiated by RES-producer groups and the preferential price set in the long-term contracts. Significantly lower actual exchange price compared to the reference price will reduce revenues of such producers by over EUR 23 per 1 MWh sold.

Source: www.emi-bg.com