The Exchange Council of the European Energy Exchange (EEX) has paved the way for the launch of new day futures for the energy market.
With this product, the exchange is responding to the trend towards trading in short-term products on the derivatives market which is observed, in particular, against the background of marketing of renewable energies.
The Exchange Council approved the expansion of the product range with day and weekend futures for the base and peak load delivery of power for Germany and Austria. These maturities will supplement the existing Phelix Futures with a weekly, monthly, quarterly and yearly delivery period. By introducing the new products, EEX is looking to close the gap between the day-ahead auction on the power spot market and the week futures on the derivatives market.
Following the presentation of the concept regarding exchange trading in guarantees of origin for power from renewable energies developed jointly by EEX and EPEX SPOT at the last Exchange Council meeting, EEX introduced its proposal regarding the design of the products for trading for up to three years ahead and put it up for discussion at this meeting.
Five products are planned for trading on the EEX Derivatives Market.
Green Power Certificates regarding the three primary energy sources wind, hydroelectric and solar power from the “CWE” region (Belgium, Germany, France, the Netherlands, Austria and Switzerland) are to be launched for trading and, additionally, certificates for wind and hydroelectric power from the Nordic region (Denmark, Finland, Norway and Sweden). All of these certificates are valid throughout Europe with the restriction that the interval between production and delivery must not exceed one year.
The new products are to be traded in weekly auctions on EEX. Clearing of OTC transactions is also provided for.
“Green Power Certificates form the right step to ensure that the value of renewable energies can be traded on the exchange without splitting the liquidity on the markets,” says Peter Heydecker, chairman of the Exchange Council.