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⚠️ Important insights from Compass Lexecon's study highlight that Virtual Hubs in CORE region could compromise hedging effectiveness relative to proxy-hedging on existing hubs, potentially increasing both risk and hedging costs. 📈 A careful, evidence-based approach is essential for any market changes. Data-driven decisions are crucial to safeguarding effective hedging and liquidity in the European electricity market. 👉 Read more in the study below.

⚠️ 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 Europex - Association of European Energy Exchanges, 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/eTXnqY9Q   #energy #electricity #MarketDesign #EMD #hedging

☀️ RE-Source Southeast 2024: Discover the agenda ⚡ Come and explore insights about the "hottest" topics on corporate sourcing, grid challenges, RES and BESS opportunities, outline future trends and developments. Join over 400 participants with different profiles - CEOs, managers, decision makers, analysts, traders, executives, consultants, etc., meet and network with leading industry players, high-level experts and future partners. The 2024 event will focus on: ➡ Business challenges and opportunities for SEE markets ➡ PPA as a working business model ➡ Successful strategies to de-risk and optimise PPAs ➡ Price & volume hedging strategies ➡ Ways of unlocking capital to back RES and storage projects ➡ Cross border grid cooperation ➡ How data can empower the energy transition ➡ Optimisation of revenue generation for RES asset ➡ Level up with insight on how storage can boost the return on RES investment ➡ How to ensure quality of BESS procurement Save your spot and register at https://lnkd.in/e8FHicEe

⚠️ 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 Eurelectric and Europex - Association of European Energy Exchanges, 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/ezdDWS8M   #energy #electricity #MarketDesign #EMD #hedging

🎉 Intraday auctions (IDA) are now a reality across Europe - and helping to deal with congestion. Intraday auctions have existed in a few individual countries for a while. But on June 13, the first pan-European intraday auctions took place throughout the Single Intraday Coupling (SIDC) region, complementing the SIDC continuous intraday market. IDAs provide market participants three new trading opportunities each day, at 15:00 (D-1), 22:00 (D-1) and 10:00 (D). These are conducted as implicit auctions using the EUPHEMIA algorithm, which has already been proven successful in the pan-European Single Day-Ahead Coupling (SDAC) project, simultaneously matching collected orders and allocating cross-zonal capacity. 🚦By including a pricing mechanism for cross-zonal capacities, the new auctions help to optimize capacity allocation, addressing the increasingly common problem of congestion. Previous pan-European energy trading projects have been implemented in waves with just a few countries at a time, requiring years to complete. Congratulations to the NEMOs, TSOs and many other involved parties for an ambitious and successful all-in-one go-live! Read the full announcement: 🔗 https://lnkd.in/ehkm6KH5 Further background and implementation details: 🔗 https://lnkd.in/eSVQnmzR #EnergyMarkets #SIDC #MarketCoupling All NEMO Committee Bursa Română de Mărfuri BSP Energy Exchange LL C CROATIAN POWER EXCHANGE Ltd. (CROPEX) EirGrid Group EPEX SPOT Etpa - A new way of power trading GME enexgroup HUPX Hungarian Power Exchange Ltd. IBEX (Independent Bulgarian Energy Exchange) Nord Pool Okte OMI - Polo Español (OMIE) SC OPCOM SA OTE, a.s. SONI - System Operator for Northern Ireland Polish Power Exchange (TGE)

The Gas Holders Market Growth and Innovation 2024 report provides industry trends, cost structures, revenue, and productivity projections, equipping stakeholders with essential information to gain a competitive advantage through a comprehensive market analysis. https://bit.ly/3RNhaSd

✒ "We don’t just focus all of our attention on a few large transactions. We value our smaller clients and transactions just as highly as the ones that make headlines. That is something we are proud of." ⚡ After weathering the storm on the #energymarkets, last year brought stability to Europe, @Risk.net notes, highlighting that volatility and tight liquidity persisted for suppliers and consumers. 📈 In this in-depth Energy Risk interview, Michiel Rutgers, Managing Director of #Axpo Netherlands, discusses the Netherlands' 2023 market challenges and our innovative solutions, including portfolio diversification, and top strategies for liquidity and competitive pricing in the #NatGas and #power markets. 💡 🔗 Here’s how we’ve supported our clients in the toughest of times: 🌟 https://lnkd.in/eAPm-jHj #EnergyTrading #AxpoNetherlands #Commodities

Must read Compass Lexecon study finds that, for the European CORE region, existing physical hubs are generally more effective for hedging than a regional virtual trading hub set-up. https://lnkd.in/eqgSBBGM #power #forward #futures #trading #electricity #market #design

The team and I have recently released the October iteration of our Market Operations report. Lets round it up:   🔋 BESS hit some record highs: - An estimated 3.1TWh utilised for frequency response services, a GB record! (slide 1) - The second highest month of BESS BM volumes at 88.3GWh, harbouring £3.3m in revenue. 💸 Day-ahead price spreads reached yearly highs: - EPEX intraday averaged £92/MWh (slide 1) - N2EX day-ahead averaged £82/MWh (slide 1) 💡 Compared to October 2023: - Demand rose by 4% to 21.2TWh - The proportion of low carbon generation fell by 4% seeing interconnector imports and CCGT generation rise by 69% and 10%, respectively, year-on-year. 📉 We saw 2 interconnectors trip: - North Sea Link (GB- NO) on October 8th, seeing frequency drop to 49.6Hz, the lowest frequency observed in 2024 (slide 2). - Viking (GB - DK) on October 28th, seeing frequency drop to 49.74Hz. 🔜 The NESO updated industry on Quick Reserve: - Phase 1 mock auctions began this month (and ended on November 8th), with a go-live date of December 3rd. - Phase 2 proposed Service and Procurement Design was published. ⚠ A Capacity Market Notice (CMN) was issued on October 14th: - Low wind and interconnector outages led to tight margins and caused a CMN to be automatically issued. - During the day, we saw BSAD trades across the remaining interconnectors reached up to £1,030/MWh to mitigate the shortfall of supply. These trades resulted in the highest average system price of the month at £151.2/MWh (slide 3). 🍃 Storm Ashley hit the UK on October 20th causing amber weather warnings in western Scotland: - Wind generation peaked on this day, totalling 301GWh and represented the highest single day of wind generation since July 4th (313GWh). - Wind curtailment reached 104GWh, costing the NESO £7.2m and saw the largest volume of wind curtailed in a single period across the month at 3.3GWh at 07:00 (SP15). For more information on our Power Insights service or to receive a copy of the full report, feel free to reach out. Alternatively, the reports are available here: https://lnkd.in/eiARnn-C

Good – Is the future of UK electricity pricing now filled with uncertainties? -Monday... As talks of zonal pricing continue to drive concerns for traders, utilities, and speculators in the power markets, it's important to remember that changes bring the most opportunities to any market. Today's article: https://lnkd.in/eJhVfsJP Navigating Investment Uncertainty in Zonal Pricing with Plexos: The recent discussions around zonal pricing in the UK electricity market have sparked concerns about the impact on investment in renewable energy projects. Many worry that this pricing model, which varies electricity costs by region, could discourage investments, particularly in high-cost zones (Energy Live News, 2024). But with the right tools, these challenges can be transformed into opportunities. Here’s how Plexos can help: 1. Location-Based Investment Analysis: Plexos provides precise simulations to assess how proximity to high-cost zones affects the profitability of energy projects. Investors can model different scenarios, allowing them to identify optimal locations with the best returns under zonal pricing. 2. Grid Congestion Insights: By simulating how grid congestion influences energy costs, Plexos enables stakeholders to predict price movements and the financial viability of projects in different regions, reducing risk and uncertainty. 3. Maximizing Cross-Border Opportunities: For projects near interconnectors, Plexos can model cross-border flows, highlighting potential arbitrage opportunities and helping investors maximize returns. 4. Balancing Market Participation: Plexos also enables the modeling of participation in balancing markets, helping energy assets located in volatile zones generate additional revenue by providing ancillary services. With Plexos, energy investors and developers gain the clarity needed to navigate the complexities of zonal pricing, turning potential risks into strategic opportunities. Get in touch or learn more about our capabilities & product offering below - https://lnkd.in/eKyMCyt7 #GB #Power #Electricity #Gas #Water #Hydro #EnergyExemplar #ZonalPricing #EnergyTransition #UKIndustrialStrategy #Plexos #PlexosInsight #PlexosPlaybook #PlexosEngine #PlexosSolutions #Priceforecast #GBMarketModel #EUMarketModel