EEX and Pexapark flesh out renewables collaboration

FRANKFURT, July 5 (Reuters) – German energy exchange EEX (DB1Gn.DE) is collaborating with Pexapark, a Swiss risk-management company, on trading solutions for investors to hedge price risks of renewable power assets in post-subsidy markets, the two said on Monday.

Pexapark customers will gain access to EEX power prices data to help them to analyse future income streams for new financing tools called power purchase agreements (PPAs), they said at a webinar.

The event provided detail of the collaboration announced initially to customers a week ago and with prices visible since last week.

EEX, the world’s biggest electricity bourse, focuses largely on flagship contracts for European power, with German contracts currently available up to three to four years ahead.

The time spans result from the interplay between generators, which are physical hedgers of future production, and financial players that take opposing prices bets, said Viviana Ciancibello, a senior business developer at EEX.

Longer-term deals currently are done via bespoke over-the-counter (OTC) trade registration facilities that EEX backs via its ECC clearing arm.

To extend price discovery, the exchange is working on a project to extend prices quotes to up to 10 years ahead for Germany, Italy and Spain initially, Ciancibello said.

Under the bilateral agreement with Pexapark, German futures will be published initially on the Swiss company’s reference platform, Pexaquote.

PPAs, fixed-price deals between corporate buyers of green power, are becoming incresingly popular among investors and lenders.

EEX hopes to benefit from the cooperation to reach new customers and boost liquidity, having expanded its gas derivatives portfolio since June 28.

Reporting by Vera Eckert
Editing by David Goodman

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