European energy bourse EEX is poised to introduce new electricity forward products in the Nordic region, slated to go live on March 25, aiming to invigorate its power trading volumes in the future, stated its chief executive on Tuesday.
EEX, renowned as Europe's largest power and gas exchange, is embarking on a mission to enhance trading avenues for power in Norway, Sweden, Finland, and Denmark, where energy deregulation in the 1990s laid the groundwork for a burgeoning wholesale trading sector, catapulting the region ahead of its European counterparts.
However, to ensure coherence with established trade references and practices prevalent in 20 other European power derivatives markets where EEX operates, adjustments are imperative, stressed CEO Peter Reitz in an interview conducted during the E-World trade fair.
“We are collaborating closely with our clients to initiate what we term as the zonal futures for the Scandinavian market next month,” Reitz disclosed, emphasizing the pivotal role of these contracts in providing a more accurate portrayal of diverse generation mixes and the burgeoning expansion of renewable energy sources in the region.
According to Reitz, clients are poised to benefit from enhanced accessibility to specific location and product trades, spanning from delivery points nestled near the Arctic Circle to Denmark's border with Germany.
The proposed plans encompass a spectrum of weekly, monthly, and annual power delivery offerings across 12 zones within the region, predominantly powered by wind, hydroelectric, and nuclear plants.
Traders will have the opportunity to capitalize on spread trading opportunities within the zones while also exploring cross-border spread prospects with other European power markets and various commodities, Reitz elaborated.
In a bid to facilitate the transition, EEX intends to extend the available expiries for existing EEX Nordic Power Futures by an additional decade.
Last year, EEX facilitated the trading of 5,185 terawatt hours (TWh) of power across Europe, constituting over 60% of its global power volume turnover, showcasing its dominant position in the global energy market landscape.
