We enable the energy transition.
Efficient and liquid wholesale markets are a prerequisite for competitive retail markets, and hence and advantage for the final consumer.The larger supply and demand, the more relevant and competitive the price signal. EEX Group offers market participants a broad product portfolio to hedge their price risks on the spot and derivatives markets.
Power Spot and Derivatives
The Power Spot Market is used for the short-term optimization of procurement and sales on the market. Within EEX Group, EPEX SPOT operates the most liquid Day-Ahead and Intraday markets in Europe which are embedded in the European market coupling.
Both markets fulfill different purposes and are indispensable links of the energy value chain. The Day-ahead market is operated by a blind auction which takes place once a day, all year round. All hours of the following day are traded in this auction. On the Intraday market, market participants trade continuously, 24 hours a day, with delivery on the same day.
On the Power Derivatives Market, market participants can hedge against future price risk up to six year in the future. The product range includes 20 market areas in Europe which are all cleared via one clearing house. Trading is offered along the whole curve from day to year contracts.
Power Products for Energy Transition
EEX Group develops new products for the energy transition
Wholesale Market and Renewables
Renewable power needs to be efficiently integrated into the wholesale market in order to reach the final consumer.
With an increasing share of renewables production, the market needs more short-term products on the spot and derivatives market. EPEX SPOT and EEX continuously develop their product portfolio to match the needs of the market. On the spot market, this included the launch of further intraday products (local auctions launched in 2020) and a subsequent reduction of the lead time before physical delivery takes place. By this, EPEX SPOT´s products match the fluctuating nature of most renewable energy sources.
On the power derivatives market, EEX continuously added short-term maturities such as Day, Weekend and Week contracts to its portfolio to provide market participants with further flexibility, a product range which shall be extended to all market areas.
Power Purchase Agreement (PPA)
PPA hedging as instrument to secure renewables
A Power Purchase Agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a renewable energy plant on a customer’s property at little to no cost.
PPA’s are bilaterally concluded and extend over a long period, up to ten or even more years. Trading at EEX increases security and standardization of Power Purchase Agreements (PPA) hedging and provides the tools to actively support the energy transition in Europe.
By hedging long-term price risk via the standard power futures, PPA-counterparties can hedge against the risk of future price changes and counterparty bankruptcy up to six years ahead. To further support PPA hedging, EEX will extend the tradable year contracts and enable market participants to “hedge the decade” until 2030.