Trading Guarantees of Origin at EEX June 2014
Copyright 2014 – All rights reserved
Contents
1. Overview of the GO market
2. Guarantees of Origin on EEX 3. ECC Delivery Process and Admission
Copyright 2014 – All rights reserved
Page 2
Overview GoO’s
According to the EU guideline 2009/28/EC, all European Union member states are required to establish a national registry for Guarantees of Origin (GoOs) for electricity from renewable energy sources.
GoOs are certificates that prove that one MWh of electricity was produced using renewable energy sources. GoOs are exclusively issued for disclosure and transparency purposes.
Copyright 2014 – All rights reserved
Page 3
Association of Issuing Bodies (AIB): The European Hub for Energy Certificates AIB Finland
Gives the rules for EECS (the so called PRO) Checks if national registers are in line with rules – so called Domain Protocol Awards AIB numbers (international account
numbers)
National registries (issuing bodies): Use their own software to run a registry and are responsible for the connection to the other registries
Spain
They set up the Domain Protocol which provides details on the way the national registry will be run
Copyright 2014 – All rights reserved
Page 4
Contents
1. Overview of the GO market
2. Guarantees of Origin on EEX 3. ECC Delivery Process and Admission
Copyright 2014 – All rights reserved
Page 5
GO Product Design Hydro Nordic Countries covered: Denmark, Sweden, Norway, Finland GOs from non-supported power plants Hydro Alpine Countries covered: Austria, Germany, Switzerland GOs from non-supported power plants Central Northern European Wind Countries covered: Belgium, Denmark Germany, Netherlands GOs may come from supported power plants
Copyright 2014 – All rights reserved
Page 6
Tradable GO Products at EEX
EEX is setting a new market standard for GO trading by grouping countries, production periods and expiries to standardized products. Copyright 2014 – All rights reserved
Page 7
GoO Derivatives Market on EEX – Expiries The futures on Guarantees of Origin’s expire on the last day of trading at 4:00pm (CET). The futures expire on the first trading day in the delivery month (March and/or December). This is usually the first Thursday in the delivery month. The following certificates can be submitted at the following maturities:
Copyright 2014 – All rights reserved
Page 8
GoO Derivatives Market on EEX – Trading hours
In order to bundle liquidity in this new market segment, the new GoO futures will only be available with limited trading hours. Trading is possible in continuous trading every Thursday from 13:00-16:00 (CET).
However, the registration of Trade Registration is possible from 8:00 to 18:00 (CET) on every exchange trading day.
Since trading in futures on GoO is limited to one trading day per week only, settlement prices are only established on that day. The last settlement price established remains unchanged on the days between the trading days.
Copyright 2014 – All rights reserved
Page 9
Outlook and actions on EEX´side
•
As of February, additional trading members have joined the EEX GO market to trade
•
EEX has introduced a new membership type “Environmental Markets” that allows trading of GO Futures for an annual fee of 2.500 EUR only. The first year of membership is free of charge.
•
On the background of the drop of market prices, EEX wants to support market participants by waiving the trading fees until end of 2014. Trading participants will only have to pay clearing fees of 0.0025 EUR/MWh
EEX is committed to develop a liquid and transparent market for Guarantees of Origin. Copyright 2014 – All rights reserved
Page 10
Members admitted to GoOs
Axpo
Becomac
CNR
Danske Commodities
Enovos Luxembourg S.A.
E-Steiermark
e&t Energie Handelsgesellschaft m.b.H
Getec
GreenStream Network
Kom-Solution
Markedskraft ASA
Stadtwerke Karlsruhe
Stadtwerke München
Tiwag
Verbund
More to come….
Copyright 2014 – All rights reserved
Page 11
Market Making on GO
Two new market makers will be joining shortly
They will quote the first two December-expiries in Nordic Hydro.
Copyright 2014 – All rights reserved
Page 12
2013-06-06 2013-06-13 2013-06-20 2013-06-27 2013-07-04 2013-07-11 2013-07-18 2013-07-25 2013-08-01 2013-08-08 2013-08-15 2013-08-22 2013-08-29 2013-09-05 2013-09-12 2013-09-19 2013-09-26 2013-10-03 2013-10-10 2013-10-17 2013-10-24 2013-10-31 2013-11-07 2013-11-14 2013-11-21 2013-11-28 2013-12-05 2013-12-12 2013-12-19 2013-12-26 2014-01-02 2014-01-09 2014-01-16 2014-01-23 2014-01-30 2014-02-06 2014-02-13 2014-02-20 2014-02-27 2014-03-06 2014-03-13 2014-03-20 2014-03-27 2014-04-03 2014-04-10 2014-04-17 2014-04-24
Price development for GoOs traded on EEX As of 30 April 2014
EUR/MWh
1,20
1,10
1,00
0,90
0,80
0,70
0,60
0,50
0,40
0,30
0,20
0,10
0,00
Alpine Dec 13 Alpine Dec 14
Copyright 2014 – All rights reserved
Wind Dec 13 Wind Dec 14 Nordic Dec 13 Nordic Dec 14 Page 13
Contents
1. Overview of the GOO market
2. Guarantees of Origin on EEX 3. ECC Delivery Process and Admission
Copyright 2014 – All rights reserved
Page
14
Delivery Process
Registry accounts Sellers
Registry
Grexel ccount ECC
Registry accounts Buyers
Manual link / 4-eyes principle ECC system
Internal accounts Seller
Internal account ECC
Internal accounts Buyers
ECC holds an account at Grexel in Finland Trading can be done up to three years before delivery, sellers must deliver GOs to the ECC account until the day of expiry Buyers receive GOs immediately after expiry first on their internal ECC accounts and afterwards on their national registry account
Copyright 2014 – All rights reserved
Page
15
Admission Preconditions for the admission of companies to trading:
Company
Proof of at least € 50,000 equity (Art. 19 BörsG [Exchange Act]) Reliability and professional qualification of the managing directors Admission as a clearing or non-clearing member by ECC AG
Trading participant
Recognition as a trading participant by ECC AG for the products (physical settlement: proof of proper physical settlement of the transactions )
Technical connection to the EEX trading system At least one trader
Precondition for the admission of employees to trading: Employee Reliability and professional qualification Exchange trader examination Exchange trader
Copyright 2014 – All rights reserved
Page
16
Thank you for your attention.
Copyright 2014 – All rights reserved
