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Global Power Derivatives Newsletter | January 2024 |  |
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Dear Customers, Partners and Friends,
Welcome to our first Power Derivatives newsletter of the year.
2024 will be an important year not only for EEX, but all power markets, as derivatives trading and hedging will continue to play a core role in trading strategies in a world of economic uncertainties and unexpected geopolitical events.
We can't wait to continue the building of our markets together and especially looking forward to the upcoming launch of our new Nordic Zonal Futures on 25 March. We believe that our new products will provide more choice for our customers to hedge price risks, and eventually increase the liquidity on the Nordic markets.
Further East, Japan Power will enter its fourth year with unabated growth since 2020! We have just reported record monthly trading volumes in December 2023, followed by a daily record in January, and no signs of slowing down.
We are also looking forward to meeting you in person again, starting with E-world, a staple in our calendars. There, you can hear the latest updates on our plans across all asset classes, and don’t hesitate to reach out to our experts to meet and discuss how we can support you.
Wishing you all a happy and healthy new year,
Steffen Köhler
COO | EEX
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| | Remarkable trading volumes in 2023 | |
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In 2023, trading levels on our power derivatives markets have surpassed the 5,000 TWh threshold for the first time, Primary drivers for this growth included our core German, French and Dutch markets with levels at all-time high, while the impressive expansion at Japan Power continues.
To learn more about our annual volumes in 2023, have a look at our press release.
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| | | Japan Power soars | |
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Further East, Japan Power will enter its fourth year with unabated growth since 2020! Last December saw a monthly volumes record with 2.8 TWh and in January we are on track to significantly exceed this figure with several day trading records broken throughout the month – the highest currently at 658 GWh.
Watch our 2023 wrap-up for our highlights and how Japan Power almost tripled trading volumes year-on-year here.
For Asia-related enquiries, contact our EEX Asia sales team.
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| | Monthly power updates | |
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Our expert power derivatives team publishes monthly updates on the markets we are present.
To view the latest report, click here.
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FOR ALL VIDEO CONTENT - MAKE SURE TO CHECK OUT EEX TV
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| | | Nordic Zonal Futures to arrive 25 March | |
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From 25 March we will offer financially-settled baseload futures for all 12 Danish, Finnish, Norwegian and Swedish bidding zones, in addition to extending the number of tradable contracts in our existing Nordic Power Futures, settled against the Nordic System Price.
To learn more about our offering for the region, visit our dedicated Nordics webpage.
If you are interested in our upcoming market maker scheme for the Nordics, please contact your KAM or our sales team.
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| | Access to EEX-PXE Croatian Power Futures | |
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Between 18 January and 29 February, EEX is gradually granting access to the EEX-PXE Croatian Power Futures to all trading participants admitted at EEX and approved by ECC to trade EEX Power Derivatives denominated in EUR. For new admissions, these futures will be automatically assigned as part of the overall EEX Power Derivatives offering.
For more information, visit our Customer Information page.
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Meet us at E-world 2024
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We are looking forward to meeting you again at E-world (20-22 February) in Essen.
Visit us at our Booth #3G130.
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| More information
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| | Electricity Market Design reform adopted | |
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Last December, the European Parliament and the Council of the EU reached a political agreement on the Electricity Market Design reform, with the main point of contention around the use of state-backed, two-sided CfDs for investments in electricity from renewables and nuclear energy resolved. We welcome the requirement for these contracts to be properly designed to prevent market and competition distortion, however, we remain cautious about the potential risk of crowding out liquidity in futures markets if Member States extensively rely on them or if the contracts are not well designed.
Another significant development is the establishment of regional virtual trading hubs and the associated transmission rights. Co-legislators mandated the European Commission to conduct an impact assessment on its need and potential design first, an approach we welcome.
The role of PPAs as long-term market-based instruments is reinforced, with Member States encouraged to consider such contracts on a voluntary basis to achieve energy decarbonization objectives. We consider these market-based contracts to be an effective tool for long-term hedging but are cautious of overregulation.
The next step is for Members of the European Parliament to formally adopt the text, followed by ministerial approval and its publication in the Official Journal of the EU. This means that the entry into force can be expected by Q2 2024.
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E-World | 20-24 February | Essen
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| | Beyond Power Derivatives | |
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© 2024 European Energy Exchange AG http://www.eex-group.com
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