Special auction for 2023 Swiss GOs

Auction Result

The auction organized by BUYECO last month took place as scheduled, unfortunately, no sales were concluded. 34 participants submitted one or more quantities for sale, with prices ranging from 1 to 30 CHF per MWh.

Despite sending information to several dozen potential buyers in our network, none came forward spontaneously. Of about 40 new buyers contacted proactively, 3 showed interest, which did not materialize.

The three main reasons for this result are 1) the abundant supply observed in 2023 and 2) the late organization of this auction (the end of May is the deadline for power distributors to finalize their annual mix). Even the lowest prices found no takers, so the main factor was the lack of demand. Finally, we cannot exclude that 3) our efforts to find buyers were insufficient.

We must continue efforts to enable independent producers to sell their guarantees of origin on the Swiss market. We knew that this sale presented several challenges and it allowed us to draw some important lessons that we will apply to the next auction:

• auctions need to be organized earlier in the production year and at the latest in the first quarter of the following year. The next auction for the GO 2024 will take place in Q3 2024,
• the management of small productions is complex. BUYECO strives to support productions from the first kWh, and we do not want to abandon this mission. A solution must be found, either by grouping offers in advance or by offering the possibility of establishing standing orders.
• We believe that the overall outcome remains positive despite the result. It reaffirms the important role of BUYECO in stimulating the independent market for guarantees of origin.
• BUYECO needs to find new potential buyers. We will organize a prospecting campaign before the end of the year and continue our efforts to provide quality content on this platform.

Here are the quantities submitted (in GWh)

And the monthly productions:

Auction Process [archived]

BUYECO organises a special auction, starting May 6th, 2024, for 2023 Guarantees of Origins (produced in Switzerland from January to December 2023).

The starting price for buyer's bids is at CHF 3 / MWh (0.3 cts / kWh).

If you want to participate, make sure your alert notifications are turned on, as we will send submission forms via e-mail. If you have any question contact us: info@buyeco.ch.

Auction Schedule (Zurich time):

1. Submission for sellers: May 6th, 2024, 11 am to May 9th, 2024, 11 am
2. Available quantities notification to potential buyers: May 9th, 2024
3. Bidding period for buyers: May 10th, 2024, 11 am to May 14th, 2024, 11 am
4. Auction results: Communicated on May 15th, 2024

Terms and conditions:

All participants must have a Pronovo account (proof will be required), and a validated BUYECO account. You must accept our general terms and conditions and that of the auction below.

Offers and bids are binding.

This auction is for Guarantees of Origin produced during the period of January to December 2023. Sellers must already have their GOs available on the Pronovo platform before creating an offer.

Schedule and Procedures for the Auction (all times are in Zurich time).

1. Offer submission period: From Monday, May 6th, 2024 at 11 am to Thursday, May 9th, 2024 at 11 am
   • Sellers will submit their offers to BUYECO during this four-day period
   • Details including type of electricity, location (country, canton), quantity, and label must be registered via a form (link will be sent shortly before the offer period).
   • Sellers may set a minimum price, which will not be disclosed.
   • Sellers can adjust their minimum price downward, but this will result in losing their initial position in the list.
   • Offers can be withdrawn until the end of the 4-day period. After this deadline, all offers are considered firm. Non-honored offers may result in exclusion from future auctions.
2. Communication of available quantities: BUYECO will communicate the list of available quantities on Thursday, May 9th, in the evening, to all registered BUYECO users who agreed to receive GO sales alerts. Quantities will be anonymized and grouped by electricity type, locations, and labels.
3. Bidding Period for buyers: From Friday, May 10th at 11 am to Tuesday, May 14th at 11 am
   • Buyers will place their bids anonymously during this period.
   • Quantity and bid price must be registered via a form (link will be sent shortly before the bidding period).
   • If two similar bids are placed at the same price, the first received bid will be given the highest priority.
4. Auction Results: Order matching results, as well as aggregated data on quantities and average weighted prices will be communicated on Wednesday, May 15th. BUYECO will facilitate the order matching and will connect buyers with sellers, according to Section 3.1 ("Sales Agreement") of our sales conditions.

Important: all transacted GOs produced beftween January and May 2023 must be transferred and cancelled before May 31st, 2024.

Order Matching Rules

• Offers will be matched to the highest bids in the order they were received during the offer submission period.
• Highest bids from buyers will receive the desired quantity first, if available.
• The first offer received will be matched with the highest bid, unless the minimum price was set higher than the bid. In this case, the next offer received will be selected, and so on.
• If the quantity offered by the seller is lower than the requested quantity, the remaining quantity requested by the buyer will be matched to other offers, if possible.
• However, if the requested quantity by the buyer has been matched to less than 50% in total, the buyer is allowed to withdraw their offer. If this is case, previously matched offers will return to the order book.
• Similarly, the quantity offered by the seller may be split if the quantity requested by the buyer is lower. The remaining quantity offered by the seller will be matched to other buyer's bids in the exact same conditions as above.

Sellers optimize chances with low minimum prices. By default the minimum price is that of the minimum bid, i.e. CHF 3 / MWh (0.3 cts / kWh); buyers succeed with higher bids.

Fees

All auction-related services are free, except for a 10% commission for buyers on winning bids (plus VAT if applicable).

For buyers willing to be assisted in post-auction operations, BUYECO can provide assistance for a fee (for example managing transactions and cancellations for small productions, typically < 100 MWh). Contact us for a quote.

For Buyers:

• Registration on BUYECO: Free
• Participation in the auction: Free
• Access to aggregated auction data (prices and quantities): Free
• Fees on winning bids: 10% commission to BUYECO, + VAT to the seller if applicable.

For Sellers:

• Registration on BUYECO: Free
• Participation in the auction: Free
• Access to aggregated auction data (prices and quantities): Free
• Fees on winning bids: 0%