EEX energy bourse expects growth from new power products

European Energy Exchange AG

20/02/2024 15:38

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      EEX to align Nordic power futures with rest of Europe
    

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      Go-live date of new derivatives is March 25
    

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      More spread trading chances should boost liquidity
    

  
    By Vera Eckert
       ESSEN, Germany, Feb 20 (Reuters) - European energy
bourse EEX  DB1Gn.DE  expects new electricity forward products
in the Nordic region that will go live on March 25 to help raise
its future power trading volumes, its chief executive said on
Tuesday.
    EEX, Europe's biggest power and gas exchange, is seeking to
refine trading options for power in Norway, Sweden, Finland and
Denmark, where energy was deregulated in the 1990s, kickstarting
a new wholesale trading industry ahead of the rest of Europe.
    But now, the Nordics needed to be aligned with trade
references and modalities customary in 20 other European power
derivatives markets where EEX is active, CEO Peter Reitz said in
an interview during the E-World trade fair.
    The move is part of the bourse's global forays not just in
Europe, but also in overseas markets reaching as far as Japan
and the United States.
    "We are in preparations with our customers to start what is
called the zonal futures for the Scandinavian market next
month," Reitz said.
    "The contracts are a better representation of different
generation mixes and the expansion of renewable energies in the
region," he said.
    Clients stand to gain better access to specific location and
product trades from delivery points near the Arctic Circle down
to Denmark's border with Germany, he said.
    The plans entail weekly, monthly and annual power delivery
offerings in 12 zones of the region that is powered by wind,
hydroelectric and nuclear plants.
    Traders will be able to exploit spread trading between the
zones but also seek cross-border spread opportunities with other
European power markets, and with other commodities, Reitz said.
    EEX will extend available expiries for existing EEX Nordic
Power Futures for another 10 years, to allow for the transition.
    The EEX traded 5,185 terawatt hours (TWh) of power in Europe
last year, where it turns over 60% of its global power volume.

 (Reporting by Vera Eckert, editing by Sharon Singleton)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))