European Energy Exchange
| EEX | |
|---|---|
| European Energy Exchange AG | |
| Type | Physical commodity and derivates exchange (energy) |
| Location | Leipzig, Germany |
| Founded | 2002 |
| Key people | Peter Reitz (CEO), Steffen Köhler (CMO), Dr. Christoph Mura (COO), Iris Weidiner (CFO) |
| Currency | EUR |
| Commodities | Electric power, Natural gas, CO2 Emission Allowances, Coal |
| Website | www.eex.com |
European Energy Exchange AG, Germany's energy exchange, is the leading energy exchange in Central Europe.
Overview
The European Energy Exchange is located in Leipzig. Preceding companies were LPX Leipzig Power Exchange, located in Leipzig and European Energy Exchange, located in Frankfurt. Both power exchanges merged in the year 2002.
EEX operates market platforms for trading in electric energy, natural gas, CO2 emission allowances and coal. EEX holds 50% of the European Power Exchange EPEX SPOT located in Paris which operates short-term trading in power for Germany, Austria, France and Switzerland. Furthermore EEX's subsidiary EEX Power Derivatives GmbH offers a platform for German and French power derivatives trading.
EEX is a shareholder of the North-West European auction office European Market Coupling Company.[1] Moreover, EEX holds minority shares in the companies trac-x (Transport Capacity Exchange) and store-ex (Storage Capacity Exchange).
Trading volume
In 2011, the trading of electricity on the EEX Power Derivatives Market amounted to 1,075 TWh (terawatt hours) compared with 1,208 TWh in 2010. In the year 2011, a total of 314 TWh was traded on the Power Spot Markets of EPEX SPOT (2010: 279 TWh). In the field of natural gas the volume traded on the EEX amounted to 58.6 TWh, an increase of 25 percent compared with the previous year (2010: 46.9 TWh). The volume in trading in emission allowances on the Spot Market increased slightly to 25.6 million tonnes in 2011 (previous year: 25.2 million tonnes), while the volume on the Derivatives Market declined (2011: 81.0 million tonnes as against 127.2 million tonnes in 2010). [2]
Spot market
The spot market for electricity is operated by EPEX SPOT, a joint venture owned by German EEX AG and the French Powernext SA. On each day of the year, EPEX SPOT operates day ahead auctions for three market areas: Germany/Austria, France and Switzerland. The physical delivery of power takes place on the next day. EPEX SPOT provides also an intraday market for Germany and France. This market can be used to satisfy short-term needs of electricity or to sell short-term over capacities. Participants in the market can buy up to 45 minutes before every hour electricity for the specific hour. This market operates 24/7 without exceptions. The electricity for the next day can be traded from 15:00 onwards.
EEX operates a 24/7 spot market (day-ahead and within-day) for natural gas. Short term gas quantities can be traded on the exchange for delivery in the market areas GASPOOL, NetConnect Germany (NCG) and the Dutch Title Transfer Facility (TTF) area.
EEX offers also a spot market for EU allowances.
Derivatives market
Participants on the EEX can trade power contracts (weeks, months, quarters, years) up to 6 years in the future. The Power Futures are financially settled contracts, but they can be physically delivered in Germany and France. Besides electricity also natural gas futures (market areas GASPOOL and NCG), financial coal futures and a broad range of CO2 derivatives (Futures on EUA, CER, EUAA and ERU) can be traded at the EEX-Derivatives market.
Clearing & Settlement
Clearing and settlement of all exchange transactions is done by the European Commodity Clearing AG (ECC). ECC was founded in 2006 with the transfer of the EEX clearing activities to this subsidiary. Specialised on the physical delivery of energy products, ECC is dedicated clearing provider for six exchanges: APX-ENDEX, CEGH Gas Exchange of Vienna Stock Exchange, EEX, EPEX SPOT, HUPX and Powernext.
Transparency
EEX operates "Transparency in Energy Markets”, the neutral platform for energy market data which fulfils the statutory publication requirements and implements the market participants’ voluntary commitments. The platform was established by EEX and the four German transmission system operators and launched in October 2009. In 2011, the Austrian transmission system operator Austrian Power Grid AG joined the cooperation. EEX is in charge of the operation of the platform, which comprises plausibility checking, anonymisation, aggregation and publication of the data reported.
See also
References
- ↑ Who are shareholders of EMCC? European Market Coupling Company. Retrieved: 3 October 2010.
- ↑ EEX Review of 2011, EEX Press release, 12 January 2012.