The National GOs refer to GOs produced before 1 January 2022, which are Primary FiT non-EECS GOs and can be traded only by HUPX GOs members via the MEKH registry. MEKH issues GOs automatically for production with fixed rate support (KÁT) to the Account of the Hungarian TSO MAVIR from 2022. These GOs will be sold by MAVIR through an auction on the organised electricity market, and the auction income is used for covering the costs of the KÁT scheme.

A total of 0.87 TWh of GOs were offered, with 45% of EECS GOs from Hungary and France and the rest from supported Hungarian National GOs. 60% of the offered volume was sold, and 92% for the EECS GOs. 56% of the auctioned volumes came from Solar GOs (483 GWh), unsurprising given that about 75% of the Hungarian installed capacity of renewables in 2022 was from Solar.

Since National GOs are GOs produced before 1 February 2022 and can only be traded inside Hungary, they are less liquid and with a lower remaining lifetime than the recent issue EECS GOs. Compared to the previous auctions, the price spread between EECS GOs and National GOs has significantly increased, from a premium of around 300 Eurocents/MWh to more than 450 Eurocents/MWh. Among EECS GOs, we noticed a customer preference tilted to Solar GOs, with the highest VWAP of 510 Eurocents/MWh, which was at a slight premium (2 Eurocents/MWh) in comparison with the corresponding Solar GOs in the EU OTC market, versus a 6 Eurocents/MWh premium during the last auction.

The traded prices for EECS GOs are generally in line with the OTC market, with price spreads within a 10 Eurocents/MWh range. Meanwhile, compared to the previous EECS GO auction, the price growth rates among all technology were between 35 and 46%, which aligned with the price trajectory in the EU OTC market.

Source: HUPX