Strengthen market price signal, integrate renewables and develop regional coordination
EEX and EPEX SPOT respond to EU consultation on electricity market design
Leipzig / Paris, 7 October 2015 – The European Energy Exchange (EEX) and the European Power Exchange EPEX SPOT SE have jointly responded to the EU consultation on electricity market design.
In their statement, both exchanges express their strong support for market-based, European-wide solutions when looking at complex questions such as the configuration of bidding zones or support schemes for renewables. The exchanges also stress the importance of making full use of the price signal based on the established, liquid markets to drive forward internal market integration and efficiently achieve the EU’s energy and climate policy targets. Furthermore, EEX and EPEX SPOT emphasise the need for better regulation instead of more regulation.
The core messages of the exchanges’ response to the consultation are:
• Scarcity prices are an important ingredient to the market design. When scarcity prices are used to value flexibility, they create significant opportunities for the market. A clear political commitment against regulatory interference in market price formation is needed.
• The development towards large, cross-border bidding zones supports the efficiency of the power system by integrating markets.
• Renewables support needs to be increasingly market-based through feed-in-premium or quota systems. Support levels should be determined through competitive mechanisms. A more coordinated approach of renewables support in Europe is required.
• As far as market coupling is concerned, new governance rules for power exchanges are foreseen in the EU Regulation on Capacity Allocation and Congestion Management. These rules are promising and should be evaluated first before considering new regulations.
The response was handed in on 7 October 2015 and can be found by following this link .
The European Power Exchange EPEX SPOT SE operates the short-term electricity markets for Germany, France, the United Kingdom, the Netherlands, Belgium, Austria and Switzerland. Striving for the creation of a European single market for electricity, EPEX SPOT shares its expertise with partners across the continent and beyond. EPEX SPOT is a European company (Societas Europaea) in corporate structure and staff, based in Paris with offices in Amsterdam, Bern, Brussels, Leipzig, London and Vienna. More than 280 companies trade 500 TWh of electricity on EPEX SPOT and APX markets every year – 40% of its countries’ electricity consumption. EPEX SPOT is held by EEX Group, part of Deutsche Börse, and European electricity transmission system operators. For more information: www.epexspot.com
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and commodity products. At EEX, contracts on Power, Coal and Emission Allowances as well as Freight and Agricultural Products are traded or registered for clearing. Alongside EEX, EPEX SPOT, Powernext, Cleartrade Exchange (CLTX) and Gaspoint Nordic are also part of EEX Group. Clearing and settlement of trading transactions are provided by the clearing house European Commodity Clearing (ECC). For more information: www.eex.com