Bulgaria’s NEK to launch offering of guarantees of origin on IBEX

State-controlled hydropower plant operator NEK said it would launch auctions for gurarantees of origin in Bulgaria, providing liquidity in the market segment. There is currently no offering scheduled on the IBEX electricity exchange.

Following the first auction for guarantees of origin (GOs) in Bulgaria last month, state-owned hydropower operator Nаtsionalna elektricheska kompania (NEK) is preparing its first offering. The company said it would ensure liquidity in the segment.

NEK is one of the 12 participants in the market, operated by the Independent Bulgarian Energy Exchange (IBEX). The utility said it is the leader in guarantees of origin and the production of electricity from renewable sources. It is part of Bulgarian Energy Holding (BEH).

The company operates 31 hydropower and pumped storage hydropower plants, of 2.74 GW in total capacity. All guarantees of origin owned by NEK will be offered on the platform through auctions for the sale of guarantees of origin, starting this month, according to the update. However, there are no auctions in IBEX’s schedule.

A small wind power plant broke the ice in Bulgaria by selling 2,475 guarantees of origin last month. Each represents 1 MWh. The exchange established the platform four months earlier.

NEK revealed that it would start to sell GOs before the end of the month

Electricity consumers buy guarantees of origin from producers to verify that they used renewable energy.

IBEX, solely owned by the Bulgarian Stock Exchange (BSE) and the Sustainable Energy Development Agency (SEDA) of Bulgaria are authorized to jointly operate the organized market. The legal framework envisages issuing GOs monthly, quarterly and semianually.

When SEDA achieves integration with the European guarantees of origin system, the participants in the Bulgarian platform will be able to trade abroad as well.

IBEX, founded in 2014, operates day-ahead and intraday markets and a mechanism for bilateral contracts.

Neighboring Greece introduced GOs in June of last year. Also of note, Greece and Bulgaria recently enabled bilateral trade in balancing energy within the Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation (PICASSO).