EEX and Pexapark to cooperate on risk management solutions in renewables sector
The European Energy Exchange (EEX) has entered into a cooperation with Pexapark, a specialist for renewable energy sales and risk management.
Both companies are aiming to unite their unique capabilities to enhance pricing visibility and market-based risk management solutions for renewable energy projects in Europe. This collaboration will expand trading solutions for hedging renewable energy, ultimately increasing sustainability and growth in the power markets.
The cooperation focuses on promoting market-based instruments to hedge price risk in renewable energy assets, for example by means of Power Purchase Agreements (PPAs), and to enable the transition from support mechanisms to subsidy free power markets.
“Our cooperation adresses two key barriers to the growth of renewable energy PPAs which are price transparency and risk management. We want to make it easier for market participants to manage their market price exposure and credit risk which is possible through trading EEX power futures,” explains Dr Tobias Paulun, Chief Strategy Officer of EEX.
Pexapark is unrivalled when it comes to supporting energy players to buy, sell and manage renewable energy in post-subsidy markets, while EEX, as the leading power exchange worldwide, provides unparalleled expertise in exchange-based price and counterparty risk management as well as a large liquidity pool for the risk mitigation of electricity generation assets.
As a part of the agreement, EEX power price data will be published on Pexapark’s PPA price reference platform “PexaQuote”, starting with German Power Futures. Pricing data is a key component of Pexapark’s operating system which allows to analyse, price and monitor renewable energy. The addition of live EEX power prices to the platform provides Pexapark’s customers with an enhanced view of market pricing of standard instruments, conveniently within a single platform.
Michael Waldner, CEO of Pexapark, says: “Our mission is to increase transparency for renewable energy prices and enhancing risk management solutions for renewable energy players. In doing so, we drive the growth of sustainable energy. Working together with EEX, we will be able to expand the solution space available to manage renewable energy with wholesale market instruments. Additionally, market players will become aware of the relationship between wholesale market prices for standard products and the price assessment for renewable PPAs.”
EEX seeks to further engage with renewable energy players such as corporate buyers, funds and investors who are directly involved in the PPA business by collaborating with Pexapark. Both partners seek to bring this key part of the value chain closer to the wholesale market and support the instrument of PPA as the key enabler of the energy transition.