EU power trading value soared 58% to record high in 2022 - report
11/05/2023 11:38
LONDON, May 11 (Reuters) - The notional value of
wholesale power trades in Europe's main markets soared by 58%
last year to a record high of 1,314 billion euros, researchers
Prospex said on Thursday.
European energy prices hit record highs last year, following
Russia’s invasion of Ukraine while several companies with large
trading desks such as BP and Shell have reported record profits
for 2022, boosted by strong performance in their trading
divisions.
Prospex estimated the indicative notional value of the
market based on average spot prices during the year and said the
rise came despite a slump in trading volumes.
Some 5,696 terrawatt hours (TWh) were traded in Europe’s
main markets last year, down 31% compared with 2021, the report
said.
Prospex said the market could see low liquidity again this
year.
“Market indicators and sources suggest volumes have been
fairly lacklustre overall in the first four months of 2023,” the
report said, adding “the confidence that drives liquidity has
not been fully regained.”
Market-leading bourse EEX, the European Energy Exchange
DB1Gn.DE , turned over 3,700 TWh in 2022, making up 70% of
total traded volumes which included spot and futures contracts
and OTC clearing volumes handled by its clearing arm ECC.
EEX volumes were far ahead of those of major rivals also
included in the figures such as Nasdaq Commodities, Norway's
Nord Pool, Spain's OMIE, Italy's GME and American global
operator ICE.
(Reporting by Susanna Twidale
Editing by Christina Fincher)
((susanna.twidale@thomsonreuters.com; +44 207 5424753;))