HUPX, the operator of the Hungarian organised spot power market confirmed the launch of the Hungarian organised guarantees of origin (GO) market on 14 June 2022, a big milestone in terms of renewable energy trading and the FiT regime development.
Guarantees of origin are tradeable, electronic certificates, which prove that a certain share of the energy consumed was produced from renewable energy sources. Hungary announced this year to launch its organised guarantees of origin market to increase transparency, liquidity and to support its growing renewables sector.
In the first phase of the operation of the Hungarian GO market, the Hungarian Transmission System Operator (MAVIR) as the nominated buyer of Hungarian FiT production will be the sole seller of the related guarantees of origins via auctions, while the buyer side will start with 19 companies, that already have been admitted as founding members until the go-live date.
Available technologies include volumes produced under the FiT scheme, such as biogas, geothermal, hydro, landfill gas, solar, waste and wind.
Besides complementing the already existing bilateral transactions in Hungary, the primer role of the new organized and transparent marketplace is to provide proper price signals regarding guarantees of origins, which will support the development of the Hungarian power market and the integration of renewables. The results of the first auction will be published on the website of HUPX a few hours after gate closure time.
HUPX is going to introduce a platform enabling anonymous trading and offer financial clearing and settlement services to ensure reliable and guaranteed trading processes.
The first auction will offer volumes produced under the FiT scheme in the first quarter of 2022. February and March already comply with the rules set by the AIB (Association of Issuing Bodies), thus these guarantees of origin can be used internationally much easier. In February 2022 the Hungarian Energy and Public Utility Regulatory Authority (HEA) as the Hungarian issuing body joined AIB, which enables standardised cross-border GO trading.
This will be followed by an additional auction at the end of June for non-AIB volumes, produced in H2 2021. The second quarterly auction is scheduled for September 2022.
In the second phase of the GO market development, a multiple-seller model will be introduced.
The model will not only allow trading of Primary Feed-in-Tariff GOs but any further productions and the available countries will be extended to all AIB countries, besides Hungary. Sellers will include Hungarian and other AIB power plants and GO traders.
HUPX, via the new guarantees of origin market, aims to assume its role in the energy transition.
The new market will enhance the increasing share of green energy by providing a platform for organised and transparent trading not only for energy traders but for all those industrial consumers as well, who are committed to acting for a climate-neutral future and would like to track the origin of their energy consumption in a reliable way.
