Svenska kraftnät's summary of EPAD auctions for quarter 4, 2024
Svenska kraftnät has compiled summary analytics from the auctions of EPAD contracts conducted during the fourth quarter of 2024.
Svenska kraftnät can conclude that the auctions were characterized by continued good price formation and reached an all-time peak in participants since the start. The quarter was characterized by increasing price divergence between the bidding zones SE2 and SE4 and price convergence between SE3 and SE4 bidding zones. The turnover in continuous trading increased in SE2, SE3 and SE4.
The primary purpose of the auctions is to contribute to improved hedging opportunities for market participants, so called market support aimed at increasing liquidity and reducing uncertainty in the financial electricity market. The auctions add volume, support price formation, price discovery and to some extent adjust underlying market asymmetry.
Svenska kraftnät hopes that the positive effects will eventually spread to market participants of all sizes and to retail clients. Our ambition is to support the market in a way that also makes it easier for end users to find competitive fixed price agreements.
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