Powernext launches monthly Guarantees of Origin auctions

Powernext, part of EEX Group which belongs to Deutsche Börse, held the first auction of Guarantees of Origin (GO) for the French State on 18 September, 2019.

In August 2018, the French Ministry for an Ecological and Solidary Transition appointed Powernext as the operator of this auction system, and in addition extended Powernext’s mandate to operate the national registry for GOs in France. The volume of GOs put up for sale by the DGEC will vary depending on the production generated by the plants benefiting from a support mechanism. The DGEC indicated that, for auctions held between September and December, at least half of this production will be auctioned off.
 
Powernext designed the auction algorithm which enables GO buyers to submit orders of carrying degrees of specificity, ranging from an order on any GO, to orders that are targeting a specific region or technology. Participants can then indicate preferences on a particular production plant.
 
“We are very excited to see the enthusiasm that these first GO auctions have generated, which is very promising for the next sessions. We believe that the tailor-made algorithm that we designed and developed together with our partner Artelys helps market parties to best express their needs,” says Aude Filippi, Director of Growth Initiatives at Powernext.
 
“EEX Group is committed to the energy transition and is proud to offer its market expertise to the renewable electricity sector by organizing GO auctions. We believe these auctions provide for a transparent price formation, which is beneficial to all the market actors,” says Dr Tobias Paulun (pictured), President of Powernext and Chief Strategy Officer of EEX.

To further promote transparency, Powernext will publish each month the auction results on its website.
 
On 3 September 2019, Powernext and EEX AG announced the intended merger of Powernext into EEX AG as of 1 January 2020, subject to required approvals. The operation of the GO auction together with the GO registry would legally be transferred to EEX AG.