EEX and Pexapark flesh out renewables collaboration

European Energy Exchange AG

05/07/2021 16:04

FRANKFURT, July 5 (Reuters) - German energy exchange EEX
 DB1Gn.DE  is collaborating with Pexapark, a Swiss
risk-management company, on trading solutions for investors to
hedge price risks of renewable power assets in post-subsidy
markets, the two said on Monday.
    Pexapark customers will gain access to EEX power prices data
to help them to analyse future income streams for new financing
tools called power purchase agreements (PPAs), they said at a
webinar.
    The event provided detail of the collaboration announced
initially to customers a week ago and with prices visible since
last week.
    EEX, the world's biggest electricity bourse, focuses largely
on flagship contracts for European power, with German contracts
currently available up to three to four years ahead. urn:newsml:reuters.com:*:nL8N2JU3BB
    The time spans result from the interplay between generators,
which are physical hedgers of future production, and financial
players that take opposing prices bets, said Viviana
Ciancibello, a senior business developer at EEX.
    Longer-term deals currently are done via bespoke
over-the-counter (OTC) trade registration facilities that EEX
backs via its ECC clearing arm.
    To extend price discovery, the exchange is working on a
project to extend prices quotes to up to 10 years ahead for
Germany, Italy and Spain initially, Ciancibello said. 
    Under the bilateral agreement with Pexapark, German futures
will be published initially on the Swiss company's reference
platform, Pexaquote.
    PPAs, fixed-price deals between corporate buyers of green
power, are becoming incresingly popular among investors and
lenders.
    EEX hopes to benefit from the cooperation to reach new
customers and boost liquidity, having expanded its gas
derivatives portfolio since June 28.  urn:newsml:reuters.com:*:nL8N2MR33D

 (Reporting by Vera Eckert
Editing by David Goodman)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))