Features of working with electricity generation in Poland, Slovakia, Romania, and Hungary.
The European Union energy market has two main models of interaction with electricity generation: through exchange platforms and through direct contracts (PPAs). In this article, we will Exchange or direct consider the features of each model for countries such as Poland, Slovakia, Romania and Hungary, their prospects and challenges for Ukrainian traders.
Exchange model
Working through exchanges is the main mechanism for telemarketing data Exchange or direct selling electricity in the EU. For Poland, Romania, Hungary and Slovakia, access to energy exchanges is key to transparent transactions and integration into the European market.
The main exchanges in the region:
Poland: Towarowa Giełda Energii (TGE).
Advantages of working through the exchange:
1. Transparency: Exchange platforms establish practical tips to make prospecting by phone easier clear rules of the game, which minimizes the risk of opaque transactions.
2. Price dynamics: Prices are shaped by market conditions, which ensures access to competitive offers.
3. Flexibility: The ability to buy or sell energy in the short and long term.
Disadvantages:
1. High volatility: Prices on exchanges depend on many factors, including seasonal fluctuations, which creates risks for traders.
2. Administrative complexity: Working through exchanges requires regular reporting and licensing in the chosen jurisdiction.
Direct contract with generation
Direct power purchase agreements (PPAs) are gaining popularity in the EU as an alternative to exchange transactions.
What is a PPA?
This is a long-term contract between a buyer and a supplier of ao lists electricity that guarantees a fixed price for a long period (5-15 years).
Features for Poland, Slovakia, Romania and Hungary:
1. Poland: Actively implementing PPAs in the renewable energy sector.
2. Slovakia and Hungary: PPAs remain less common, but demand for “green” contracts is growing due to EU energy policy.
3. Romania: One of the leaders in the region in concluding PPAs for wind and solar energy.
Advantages of PPA:
1. Price stability: Contracts allow you to avoid fluctuations in stock prices.
2. Green certificates: PPAs are often concluded with renewable generation, which allows for environmental benefits.
3. Deal Personalization: The ability to customize the terms of the contract to the buyer’s needs.