Exchange Council welcomes success of CWE Market Coupling
Vienna, 07/12/2010 – The sixth meeting of EPEX Spot Exchange Council chaired by Dr. Günther Rabensteiner was held on December 1st, 2010 in Vienna. The main topics discussed were:
- Price formation one year after EEG marketing on the Exchange and one month after the launch of CWE Market coupling
- Impact of French NOME law on the wholesale market
Almost one year after the obligation to sell all renewable energy produced in Germany on the Exchange (“EEG Law”, in combination with the so-called ‘AusglMechAV’), the market has proved its flexibility and adaptability. Liquidity has significantly grown and prices have been less volatile than in 2009. The Exchange Council welcomed the success of CWE market coupling launched on 9 November 2010, which allows the optimal use of cross-border capacity and favors price convergence. The risk of negative prices has been reduced because CWE coupling increases the overall liquidity of the Day-Ahead market. For EEG as well as for CWE coupling, the market plays its role to send a strong and reliable economic signal as a result of the wider confrontation of supply and demand.
The Exchange Council members discussed thoroughly the possible impact of the NOME law, voted by French Parliament on 24th November, on the French wholesale market. NOME will allow more competition in the retail market, cancel tariffs for industrial consumers and decrease market concentration. It should have a positive impact on the spot volumes as smaller players will have higher “balancing” needs. However, the Exchange Council will review its effects on the liquidity of the French wholesale market. Certain measures of the law could substantially increase the amount of power which goes directly from the plants to consumers who were supplied by the wholesale market.
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EPEX Spot SE operates the power spot markets for France, Germany, Austria and Switzerland (Day Ahead and Intraday). Together these countries account for more than one third of the European electricity consumption. EPEX Spot is a Paris-based company under European law (Societas Europaea) with a branch in Leipzig. 244 TWh were traded on the EPEX Spot power markets from 1 January to 30 November 2010.