electricity trading in emerging markets vienna economic forum tirana, albania 8-9 june 08 1 exaa...
TRANSCRIPT
Electricity trading in
emerging markets
Vienna Economic Forum
Tirana, Albania
8-9 June 08
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GENERAL INFORMATION ABOUT EXAA
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Business Activities: Spot Market Energy (43 Participants – 11 countries)
Trading volume 2007 2,3 TWh ~ Clearing volume 190 Mio. € Spot Market CO2 (22 Particpants – 6 countries) Auctions (Gas, CERs, VERs, green certificates...) Services: Trainings, Consulting
Unique selling point: Lowest Fees in Europe Fully Internet-based trading platform First Daily Auction amongst EU exchanges –first price signal Members
small & medium electricity utilities, traders, banks more & more members from CEE & SEE
EXAA´s role in the energy market
Market Functions:
Provision and operation of
Trading system
Settlement system
EXAA is Central Counter Party
EXAA guarantees the financial fulfillment of all traded contracts
EXAA is responsible for Risk Management
EXAA has final responsibility and control
Our role:
Price transparency
Publication of data
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Signal to market !!
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EXAA is Member of CISMOgroup
Clearing Integrated Services
and
Market Operations Group
Power and Carbon
Exchange
Emissions Certificate Registry
Power Transport Capacity
Management
Green Energy Subsidy
Management
Balancing Management
Power
Balancing Management
Gas
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CEE / SEE
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Exporter / Importer?
Importer
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Situation of Energy market in CEE, SEE:
Within the countries, there is already largely barrier-free access to electricity trading, still lack of liquidity:
Small marktes with different models and market mechanisms EU market framework needs to be implemented
So far not many powertrading utilities, some market operators offer trading opportunities +price indications, exchanges are rare.
Grid needs: ◦ Cross Border Congestion management,
◦ Better use of inter-connectors => avoid network security problems
◦ Separate trading of capacity rights and energy increase complexity, expenses and risk
=> Regional cooperation is the key issue !
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Power market scenarios in Europe:
In Europe there are currently three different models:
1. Exchanges (market operators) do not have direct access to capacities
2. Exchanges (market operators) will receive a proportion of the available capacity for use
3. Exchanges (market operators) can trade freely across borders, because of no congestions,
=> Close cooperation between national regulators, traders/exchanges and grid operators needed !
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Example: no direct access
All borders to Austria, except to Germany
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Example: partial direct access
Trilateral market coupling in BELPEX project
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Example: full access
Border between Austria and Germany
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What do Exchanges/Traders need
Three factors are essential to ensure that energy exchanges can offer cross-border trading
1. Easy market access in all involved countries
2. Access to transport capacities – implicitly traded with power
3. Minimum Liquidity: „Free tradable electricity volumes“
Why regional cooperation ?
Development & construction of big power plants need much time and a huge amount of investments
Crossborder energy trading leads to:
Increased supply of power
Regional price adjustments avoid „price-peaks“ in international markets
Better liquidity
Risk-Optimization
=> Leads to better security of supply !
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