EPEX SPOT

The European Energy Exchange European Power Exchange ( EPEX SPOT SE) is a market for short-term wholesale electricity in Germany, France, Austria and Switzerland.

Overview

EPEX SPOT SE is a European company based in Paris, France, and a branch in Leipzig, Germany. It was founded in 2008 by the merger of electricity spot markets of energy exchanges Powernext and European Energy Exchange ( EEX). Both parent companies hold an equal share of 50 %. EPEX SPOT SE operates the power spot markets for short-term electricity trading in Germany / Austria, France and Switzerland, with Germany and Austria form a common price zone. These countries together represent about one-third of Europe's electricity consumption. EPEX SPOT has over 200 exchange members. Traded contracts in megawatt hours units. EPEX SPOT is involved in several market coupling initiatives, such as the Market Coupling in Central Western Europe ( see below) and the Interim Tight Volume Coupling with the Nordic markets through the European Market Coupling Company, EMCC.

The European Commission imposed in March 2014 in a cartel settlement procedure, a fine in the amount of 3.65 million euros compared EPEX SPOT account of illegal collusion with the Norwegian power exchange Nord Pool Spot to a non-competitive market sharing in the European Economic Area (EEA).

Trade

2012 were traded on the markets EPEX SPOT 339 terawatt hours ( TWh ), 8 % more than a year earlier.

Day-ahead markets

EPEX SPOT runs the day-ahead electricity markets for Germany / Austria, France and Switzerland. These markets operate on a blind auction where per day crossed once aggregated supply and demand curves and anonymously in this way, transparent and secure prices are determined. Exchange members give their bids in an order book that includes 12 clock for Switzerland at 11 clock and for Germany / Austria and France. In the next step EPEX SPOT calculates the supply and demand curves and their intersection point for each hour of the following day. The results are published from 11.10 clock ( Switzerland ) and 12.40 clock ( Germany / Austria and France ) to. The index for the German - Austrian market, called Physical Electricity Index or PHELIX, sends out a clear price signal for the wholesale electricity in all of Europe.

Since October 18, 2010 EPEX SPOT and EEX publish daily the ELIX, the European Electricity Index. The index is calculated on the basis of actual aggregate supply and demand curves of all market areas EPEX SPOT under the assumption that no transmission bottlenecks between national markets exist. ELIX is a fundamental indicator of a single European market, since it indicates the market price for a physically unrestricted market environment. It shows the additional benefit that could be achieved by further market integration.

The French and German day-ahead auctions are part of the Market Coupling in Central Western Europe, which started on November 9, 2010. It combines the markets of Benelux, France and Germany by a price coupling system that aims to optimally utilize the capacity at the interconnections and iron out in this manner price differentials between markets. In 2012, the trading volumes on EPEX SPOT day-ahead markets in Germany / Austria, France and Switzerland, to 321 TWh, compared to 296 TWh in 2011 amounted.

Intraday markets

EPEX SPOT also operates intraday electricity markets for France, Germany, Austria and Switzerland. The intraday markets function over a continuous trading: commandments of trading participants are continuously entered into the order book. Once two commandments are compatible, they are executed. Can be traded up to 45 minutes before physical delivery. Since December 14, 2010 exchange members can make cross-border transactions between the French and German intraday markets. This is achieved through the used of EPEX SPOT trading system ComXerv, which allows simultaneous cross-border transactions on the stock exchange and in the OTC market by itself binds to a platform capacity of the transmission system operator. With the launch of the Austrian Intraday Markets in October 2012 the cross-border trade was extended to Austria; in June 2013 was followed by Switzerland. Since December 14, 2011 are located on the German market intraday 15 -minute swap contracts. Since the launch of Swiss intraday market in June 2013 15 -minute contracts are also available in Switzerland and on cross- border trade between the two countries. These facilitate the integration of fluctuating power sources such as wind and solar, into the market. In 2012, the trading volume amounted to the intraday markets EPEX SPOT to 18 TWh.

Plans, Announcements

EPEX SPOT examined resistant ways the company can improve its "tools" for short-term electricity trade, as well as one can move to trade closer to the time of delivery in order to market fluctuating power sources efficiently. In December 2013, the company said:

" The valid today 45 minutes lead time could be shortened by a fine adjustment of the intraday chain. One aspect is to shorten the lead time for the nomination by the European Commodity Clearing, the clearing house of EPEX SPOT. It is necessary for the nomination of transactions in the transmission system operators (TSOs ) to secure the physical delivery of electricity. In addition, improvements could in some TSO - more about nominations per hour - and shorten at EPEX SPOT in terms of data transmission, the lead time. [ ... ] EPEX SPOT and ECC in 2014 in this respect closely cooperate with each other. "

" The German intraday market could be earlier than today, so was 15 clock the day before, to open. This could offset their positions [ ...] the hour [or] by means of 15 -minute contracts trading participants immediately after the auction. This change could also be extended to the other of EPEX SPOT -driven markets, based on the agreements with the respective TSOs. "