What is the PUN and how it is calculated
In Italy, the day-ahead electricity market follows the rule of marginal price, over six physical zones.
Network congestion can produce different prices in different zones, i.e. the market splitting. This means that energy can have different values in the Nation.
By design, it was decided that consumer should pay the electricity at the same price wherever in Italy. This price is the PUN: Prezzo Unico Nazionale that means National Unique Price.
Whilst the consumer buy the electricity at PUN price, hydro-pumping stations buy energy at zonal price Pz.
Three kinds of offers can be submitted on day-ahead: PUN, BID and OFF.
The Euphemia algorithm is devoted to calculating the value of energy, according to the marginal price principle.
Among the others, the following equations must be satisfied.
Euphemia takes care of possible paradoxical PUN offers.
SICI splits from the continent with a zonal price of 82.35. On the other zones, the zonal price is of € 42.11 and the marginal offer lays on SUD zone. PUN value is € 44.76291.
Market data comes from GME — www.mercatoelettrico.org
Calculations and simulations made with PowerSchedO — www.powerschedo.it
