The European Energy Exchange (EEX) will launch trading in Guarantees of Origin for Green Power on 6 June 2013.
Guarantees of Origin are certificates which prove that a given megawatt hour of power was generated from renewable resources. Used exclusively for disclosure and transparency purposes only, they are then cancelled after use.
By entering into the market of Guarantees of Origin for Green Power, EEX will establish an exchange platform for a product which has until now, only been traded over-the-counter.
Peter Reitz (pictured), chief executive officer of EEX, says: “By doing this, we are giving our market participants the opportunity to trade energy from renewables at fair market prices on a regulated market. We will also offer additional opportunities for those participating in the renewable energy market, which will open up new options for stronger market integration of renewable energy in the future.”
Trading in Guarantees of Origin on EEX is not connected to the delivery of power. The Guarantees of Origin are certified in accordance with the EU Directive 2009/28/EC and the European Energy Certificate System (EECS) of the Association of Issuing Bodies.
The products, which can be traded on EEX, bundle the energy sources hydroelectric energy and wind power on major European markets. On the Derivatives Market, the exchange will launch three products. These are Guarantees of Origin for Hydroelectric Power in Scandinavia (Norway, Sweden, Finland and Denmark) and in the Alpine region (Switzerland, Austria and Germany) as well as Guarantees of Origin for wind power from the North Sea region (Germany, Denmark, the Netherlands and Belgium).
In order to concentrate liquidity, Guarantees of Origin trading will initially only take place on one day per week (Thursdays from 1pm to 4pm).
Physical settlement of the Guarantees of Origin will be provided by the European Commodity Clearing (ECC). ECC keeps separate offsetting accounts at the Finnish registry for Guarantees of Origin, which are operated by Grexel. These accounts are used as fiduciary accounts for all Guarantees of Origin traded on EEX and permit the exchange and posting of the certificates in all national registry authorities within Europe.