Towards the European Electricity Market ELIX The European Electricity Index

Transcription

1 Towards the European Electricity Market ELIX The European Electricity Index PRESS CONFERENCE IN LONDON 7 OCTOBER 2010 Jean-François Conil-Lacoste Chief Executive Officer of EPEX Spot SE Dr. Hans-Bernd Menzel Chief Executive Officer of European Energy Exchange AG

2 The German-French co-operation in power trading at a glance May 2008: Joint press conference of EEX and Powernext in Brussels January 2009: EPEX Spot starts operations September 2009: Final merger of EEX and Powernext spot markets, one harmonized market model comes into force September 2008: EPEX Spot SE is founded in Paris April 2009: Bundling of French and German power derivatives market into EEX Power Derivatives GmbH September 2010: EPEX trading system harmonized for Day-Ahead Intraday trading system harmonization on track 2

3 EPEX Spot is the Center of gravity in European electricity trading 3 market areas: Germany/Austria France Switzerland 5 market segments: German/Austrian Auction French Auction Swiss Auction German Intraday French Intraday 3

4 at the heart of the European electricity system French Market Area, delivery on the grid managed by RTE German/Austrian Market Area, delivery on either of the following TSOs zones: Amprion TenneT (former: transpower) 50Hertz Transmission EnBW Transportnetz Austrian Power Grid Swiss Market Area, delivery on the grid managed by Swissgrid The daily and intraday nomination for the physical delivery from EPEX Spot transactions is carried out by the clearing house European Commodity Clearing AG (ECC). 4

5 EPEX Spot offers open and transparent exchange trading Dedicated to deliver quality, efficiency and reliability to our members: The Exchange Council represents the trading participants and various interest groups. Its members are involved in all decisions of fundamental importance to the exchange. An independent Market Surveillance ensures fair and transparent exchange trading and settlement. EPEX Spot provides best standards in traders training and certification. Expertise on auctioning and settlement systems is rendered also to other exchanges in Europe. 5

6 The European idea The price in Germany and France actually is the reference price for the rest of Europe. It is of an utmost importance that this reference price comes from a transparent market with sufficient volumes traded and with a sufficient number of actors. I believe, strongly believe, that with proper supervision of the exchange the price will and should be trusted by all market participants and all political decision makers, myself included. (Speech by the former European Commissioner for Energy, Andris Piebalgs, on the joint press conference of EEX and Powernext on 30 May 2008) 6

7 We cover more than 36 percent of the European electricity consumption Selected countries*: Austria 68 TWh (2.1 %) France 495 TWh (15.1 %) Germany 557 TWh (17.1 %) Switzerland 64 TWh (1.9 %) 1,184 TWh (36 %) 3 price areas Denmark 34 TWh (1.0 %) Finland 84 TWh (2.6 %) Norway 113 TWh (3.5 %) Sweden 132 TWh (4.0 %) Further EU countries 1,716 TWh (53 %) 363 TWh (11 %) 9 price areas more than 30 price areas TOTAL Europe ,263 TWh *Source: Prospex Research European Power Trading 2010 EU 27 (plus Norway and Switzerland) Net Power Consumption,

8 EPEX Spot and EEX participants Currently 258 trading participants from 21 countries are active on Europe`s most liquid power markets. As of 4 October

9 Towards a truly integrated European electricity market separated markets market coupling market integration European market areas single market price Liberalization ? ELIX Market Coupling efficient handling of congestions, but not tradeable capacities important driver of harmonization ELIX: Single market price of a truly integrated market 9

10 Calculation of the European Electricity Index - ELIX ELIX will be calculated in an auction based on aggregated bid and offer curves for the market areas Germany/Austria, France and Switzerland. ELIX is equal to the uncongested price in those market areas. ELIX is calculated through the auction algorithm and auction rules applied by EPEX Spot. Auction results: Uncongested prices for all hours of the next day. 10

11 Simulation ELIX compared to national indices ELIX is a reliable reference price for the European market: EUR/MWh EPEX FR EPEX DE/AT EPEX CH ELIX

12 ELIX - Benefits for the market ELIX shows the additional benefit which could be achieved through further market integration. ELIX provides new information for all market participants and politics and improves the understanding of European electricity prices. ELIX constitutes a transparent European reference price for the energy trading community, financial market participants, energy consumers and the general public. 12

13 Publication of ELIX As of 18 October 2010 ELIX will be calculated and published on a daily basis for the next day. Uncongested prices will be available for all hours of the next day as well as the average value for base and peak hours. ELIX will be available on the websites of EPEX Spot and EEX shortly after the publication of the national auction results. Additionally, ELIX will be published by information vendors. 13

14 ELIX will be online as of 18 October

15 Thank you for your attention. Your ideas and input are welcome!