The Phelix-DE product suite, which launched on the European Energy Exchange (EEX) in April this year, has been widely welcomed by the market, and is quickly establishing itself as the new benchmark product for German power.
EEX says that increasing confidence from market participants has resulted in a significant shift of liquidity from the old Phelix-DE/AT into the new Phelix-DE contract, particularly in contracts which cover maturities following the split of the original bidding zone, which is currently planned for 1st October 2018.
In the first half of August 2017 more than 40 per cent of the volumes in the EEX German Power Cal19 Base have been either traded or cleared in the new Phelix-DE contract. While in the same period, over 75 per cent of the volumes in the EEX German Power Cal20 Base have switched to the new Phelix-DE contract also.
“It’s very encouraging to see market confidence returning to the German power market. Since launch we have seen a very positive development in the Phelix-DE Future; (May‘17: 8.1. TWh, Jun‘17: 12.2 TWh, Jul‘17: 15.0 TWh). This development will bring security back into the market,” says Steffen Koehler (pictured), Chief Operating Officer of EEX. “2016 was a record year for EEX, and while we have seen lower volumes in the first half of this year, which is in line with overall shrinking wholesale market volumes across all European markets, it’s important to remember that 2017 is still our second best year in terms of volumes for EEX’s Power Derivatives business and for EEX German power in particular.”
