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No I am not talking about Uniper. I am talking about the exact thing you linked. > Valtiovarainministeriön tukiohjelmasta voidaan myöntää lainoja, joilla tilap
by doikor 3y ago
No I am not talking about Uniper. I am talking about the exact thing you linked.
> Valtiovarainministeriön tukiohjelmasta voidaan myöntää lainoja, joilla tilapäisesti turvattaisiin yhteiskunnan toiminnan kannalta kriittisten sähkön johdannaismarkkinoilla toimivien yhtiöiden likviditeettitarve.
Basically says the loans are given to cover electricity derivatives market liquidity needs for companies that are important for society in general (basically all large electricity producers)
> Lainoja voi käyttää vain sähkön johdannaispörssikaupan vakuusvaatimusten kattamiseksi.
"The loans can only be used for covering electricity derivative market collateral/deposit needs"
As I said when someone sells electricity they have to put money into escrow that can be used to cover that electricity production from the spot market in case they fail to produce that electricity for whatever reason (wind did not blow a much as the forecast said, nuclear plant had to be shutdown due to faulty sensor, etc)
So if you had a customer on a 5c/kWh 2 year long contract and the spot price for an hour is 2e/kWh you would have to put 2e into the escrow account for every kWh of electricity you sold for 5c/kWh during that hour (meaning you would need 40x your revenue for that day in cash just sitting around)
The system makes sense/works well when prices are somewhat normal but needs massive amounts of cash when the prices spike and this is what the government had to help with. Without this loan program there would have been many players on the market with hundreds or thousands of MW of production capacity who would have had to turn OFF their power stations at the moment when the country was almost running out of electricity because they could not have covered the deposits.
There is also the municipal owned electricity company version of that with slightly different conditions.