Europex - Association of European Energy Exchanges

📢 As the Clean Industrial Deal aims at revitalising the EU’s economy while further pursuing its climate ambitions, well-functioning and liquid energy markets remain crucial to ensuring affordable energy for European industry and households ⚡. As a first reaction, we would like to highlight the following priorities: 📈 Strengthening the Internal Energy Market, as outlined in the Action Plan for Affordable Energy, by: - Increasing investments in interconnectors - Enhancing energy system flexibility through market-based solutions - Streamlining network tariffs - Reducing energy taxation where feasible ⚠️ Carefully assessing new market overhauls to prevent fragmentation of the Internal Energy Market, incl. through regional and national interventions. 🗣️ Ensuring stakeholder engagement in the new Gas Market and Energy Union Task Forces, enabling experts to contribute their insights. 📄 Read our full press release 🔗: https://lnkd.in/eMxW8HbC

⚠️ Solutions to improve forward market liquidity should not add unnecessary complexity. The European Commission’s impact assessment should focus on the challenges that market participants face in forward markets, including a public consultation at the end of the process.   📖 Following the publication of a quantitative assessment of regional Virtual Trading Hubs (VTHs) in Continental Europe by Compass Lexecon, EU Agency for the Cooperation of Energy Regulators (ACER) presented its own VTH correlation simulator in January, producing opposite results.   In light of differing views about the best approach to estimate the costs and benefits of virtual trading hubs, Energy Traders Europe, Eurelectric and Europex are publishing a follow-up communication to explain key methodological considerations: • Market participants trading on the virtual trading hub will need to rely on a forward hub price to conduct their hedging activities. An approach determining virtual hub prices ex post will lack essential information required by traders.   • Proxy hedging provides effective cross-zonal hedging opportunities to market participants across Continental Europe. By contrast, all virtual hub configurations would lead to exclusionary dynamics, with less well-correlated bidding zones being sidelined. Read the full paper 👉 https://lnkd.in/e6B4mWs8

🚀 Working Group Leadership Update at Europex! 🚀 Following Anje Stiers’ announced departure from her position as Head of the Financial Markets Working Group, the Europex General Assembly has elected Jethro van Hardeveld as Head of Working Group Financial Markets and Ellen De Vocht as Head of Working Group Environmental Markets for the remainder of the 2024–25 mandate. Both their appointments started on 1 February 2025. Join us in welcoming Ellen and Jethro to their new roles, as we continue to advocate for efficient, secure and transparent energy and environmental markets. 🌍⚡ We extend our deepest gratitude to Anje Stiers for her eight years of dedicated leadership at Europex - shaping key discussions on financial markets, market integrity and transparency and more. 🔗 Read the full press release here: https://lnkd.in/eNyHgPPp #Europex #EnergyMarkets #FinancialMarkets #EnvironmentalMarkets

▶️15-minute products are now available for trading across several more borders and bidding zones in #SIDC: 🇮🇹  the Italian bidding zones and internal borders, effective from 1 January 2025 🇫🇷  the French bidding zone and the following interconnectors: IT-AT, IT-FR, IT-SI, FR-BE, FR-DE, EE-FI (Estlink) since 22 January 2025 🚩The implementation marks a major step toward a more dynamic, #flexible, and cost-efficient energy market that will better meet the evolving demands of Europe and strengthen its sustainable future. #SIDC #NEMOs #TSOs #15minMTU

✨2024: Wrapping up with Gratitude ✨   As we bid farewell to an eventful year, we would like to thank everyone who engaged with us in 2024. Whether you joined the conversation, attended our events or simply followed our updates, your engagement with Europex and Europe's energy markets means a lot to us.   Looking ahead, 2025 promises to be equally dynamic, with significant political and regulatory milestones on the horizon.   But for now, we hope the coming festive season brings you joy, calm and renewed inspiration for the year ahead.   🎄Wishing you a Merry Christmas & a Happy New Year! 🎉   #Europex #EnergyMarkets #SeasonGreetings #EnergyPolicy #HappyHolidays

▶️15-minute products are now available for trading in #SIDC in the #Baltic region 🚩The implementation marks a major step toward a more dynamic, #flexible, and cost-efficient energy market that will better meet the evolving demands of Europe and strengthen its sustainable future.

📢 Europex is hiring Policy Advisers to join our team! Are you passionate about shaping the future of Europe’s energy and financial markets? We’re looking for talented individuals to contribute to our policy work. Check out our open roles: ➡️ Policy Adviser – Financial Markets 👉 https://lnkd.in/eFPvj42F ➡️ Energy Markets Adviser 👉 https://lnkd.in/eG8DTxcE 📧 Send your application to jobs@europex.org by Friday, 10 January 2025. ⏳ Join Europex and make an impact in the energy landscape! 🌍 #EnergyPolicy #EnergyMarkets #PolicyJobs #JobsInEnergy

⚠️ The European Commission will assess the possible introduction of regional Virtual Trading Hubs (VTHs) for cross-zonal hedging, and the moving from zone-to-zone to zone-to-hub long-term transmission rights (LTTRs) to improve the market participants' ability to hedge price risks in the internal #electricity market - but are these measures feasible?    Together with Energy Traders Europe and Eurelectric, we advocated for a cautious approach and the need for a thorough data-driven evaluation before any changes are implemented.   Compass Lexecon's study provides a detailed quantitative analysis focusing on transaction costs and basis risks in the CORE region and its extension to Iberia and Italy. It shows that:   ▪️ The current system across the CORE region where market participants hedge using existing physical hubs like those in Germany and Hungary is generally more effective for hedging than a virtual hub setup.    ▪️ If implemented, VTHs could fragment forward market liquidity, leading to lower efficiency on the market and higher costs, which may eventually be passed on to consumers.   ▪️ The introduction of zone-to-hub LTTRs does not seem sufficient to counterbalance less efficient hedging on VTHs.    Download the study to learn more: https://lnkd.in/eqgSBBGM   #energy #electricity #MarketDesign #EMD #hedging  

⚠️ The European Commission will assess the possible introduction of regional Virtual Trading Hubs (VTHs) for cross-zonal hedging, and the moving from zone-to-zone to zone-to-hub long-term transmission rights (LTTRs) to improve the market participants' ability to hedge price risks in the internal #electricity market - but are these measures feasible?    Together with Energy Traders Europe and Eurelectric, we advocated for a cautious approach and the need for a thorough data-driven evaluation before any changes are implemented.   Compass Lexecon's study provides a detailed quantitative analysis focusing on transaction costs and basis risks in the CORE region and its extension to Iberia and Italy. It shows that:   ▪️ The current system across the CORE region where market participants hedge using existing physical hubs like those in Germany and Hungary is generally more effective for hedging than a virtual hub setup.    ▪️ If implemented, VTHs could fragment forward market liquidity, leading to lower efficiency on the market and higher costs, which may eventually be passed on to consumers.   ▪️ The introduction of zone-to-hub LTTRs does not seem sufficient to counterbalance less efficient hedging on VTHs.    Download the study to learn more: https://lnkd.in/eqgSBBGM   #energy #electricity #MarketDesign #EMD #hedging  

💡 On 29 October 2024 (first trading day) Flow-Based Methodology was successfully implemented in the Nordic Region, where it optimises Day-Ahead Market Coupling (SDAC). 👉 Following Central Western Europe and Core regions, flow-based methodology is now used when allocating cross-border capacities for SDAC in Denmark, Finland, Norway and Sweden thus improving capacity allocation and enabling the European power grid to transport more electricity across borders. For more information on Nordic Flow-Based: https://lnkd.in/dRx-h_mz