Power of Poland - why now is the time to re-evaluate its trading potential - Dina Lašová (PXE), Head of Sales and Customer Relations | Katharina ...
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Power of Poland – why now is the time to re-evaluate its trading potential „ Dina Lašová (PXE), Head of Sales and Customer Relations | Katharina Niciejewska (EPEX SPOT), Expert Key Account Manager
Brief Look Back I.
What made Poland unattractive for trading
Island within the integrated EU market
Low cross-border trading capacities were offered
Significant share of state owned incumbents
Regulatory interventions e.g. Obligation to sell 100% of production using
the Polish exchange
Poland became from natural exporter the most isolated and expansive
market in Europe – Polish price pattern was historically very different from
the rest of Europe
Low International presence
Attempts by the government to control the power production made most
of the international utilities sell the assets and leave
The majority of market players are Polish companies
Building Markets Together 2021 | Confidential © EEX AG, 2021
Brief Look Back II.
What made Poland unattractive for trading
Fossil fuels fired production
Aging of conventional assets
Problems with financing – banks pulling out of the fossil fuels related
business
Long-term trading and hedging very difficult
Historically very untransparent coal market
Almost impossible to get coal price for more than two years ahead
The power prices, therefore, not available for CAL plus 2
Building Markets Together 2021 | Confidential © EEX AG, 2021 3
Why Poland, Why Now I.
unlocking the potential – why is Poland attractive now
Market size
Almost 150 TWh generation / over 160 TWh consumption - No. 3 / 4 in
Europe
The full market potential est. 200 TWh
EPEX now in Poland – platform efficiency
market is opening up to international traders again
Offers spot index in EUR => equivalency to the market in terms of
harmonized currency
Upcoming market coupling
Supports the EU market integration
Eliminates the lack of cross – border capacities
Building Markets Together 2021 | Confidential © EEX AG, 2021 4
Power generation and consumption overview
Source: Entsoe
Building Markets Together 2021 | Confidential © EEX AG, 2021 5
Why Poland, Why Now II.
unlocking the potential – why is Poland attractive now
Overall changes in the European market
German nuclear and coal exit announced till end of 2022 => increase of the
overall cross border trading across Europe, affecting Poland as a
neighbouring country to Germany
Transition from fossil fuels towards renewables
Volatility and incomparable trading opportunities
New volume coming from the PPA‘s hedges … yes it is already happening
Building Markets Together 2021 | Confidential © EEX AG, 2021 6
Deals on Polish Power market in 2021
Trade Dat
Product
Trade Lots (in Initial Margin (in
Trade
Volume (in Notional Value • 50 MW of long-term products
e Price MW) EUR)
MWh) were traded on Polish Power
03.02.2021 CAL 2022 58,50 € 5 200 166,00 € 43 800 2 562 300,00 €
market in the beginning of
04.02.2021 CAL 2022 58,80 € 20 800 664,00 € 175 200 10 301 760,00 € 2021, with an initial margin
05.02.2021 CAL 2022 59,10 € 10 400 332,00 € 87 600 5 177 160,00 €
requirement of 1 808 382
EUR
05.02.2021 CAL 2023 58,30 € 10 290 832,00 € 87 600 5 107 080,00 €
• The Initial Margin
08.02.2021 CAL 2024 58,75 € 5 116 388,00 € 43 920 2 580 300,00 € percentage of the notional
SUM 50 1 808 382,00 € 438 120 25 728 600,00 € value of the trades was 7%
2000000 200000
1800000 180000
Traded Volume [MWh]
Open Interest [MWh]
1600000 160000
1400000 140000
1200000 120000
1000000 100000
800000 80000
600000 60000
400000 40000
200000 20000
0 0
2/1/2019 5/1/2019 8/1/2019 11/1/2019 2/1/2020 5/1/2020 8/1/2020 11/1/2020 2/1/2021
Open interest MWh Traded Volume MWh
Building Markets Together 2021 | Confidential © EEX AG, 2021 7
EEX Group Derivatives Offering for Polish Market
Polish financial settled Futures with
the following maturities:
Financial Power EURO
}
Futures denominated Day Day Day Day
1 … … 31
Short
Exchange Financial Wknd Wknd futures
1 2 coming
Trading fulfillment soon
Week Week Week Week Week
& Trade & cleared 1 2 3 4 5
Registration by ECC Month Month Month Month Month Month Month
1 2 3 4 5 6 7
Quarter QuarterQuarterQuarter Quarter Quarter Quarter
1 2 3 4 5 6 7
Yes, we have a market maker - very
warm welcome and thank you for Year Year Year Year Year Year
1 2 3 4 5 6
support, Sebastian!
Product Code: FP{B,P}{M,Q,Y},
Trayport ID: 10012621 (base); 10012623 (peak)
Building Markets Together 2021 | Confidential © EEX AG, 2021 8
Location Spreads CSEE
PXE Czech - PXE Polish
DE Power - PXE Polish PXE Czech - PXE Slovak
DE Power - PXE Czech PXE Slovak - PXE Polish
DE Power - PXE Slovak PXE Slovak - PXE HU
DE Power - PXE Hungarian
DE Power - PXE Serbian
PXE HU - PXE Romanian
PXE HU - EEX Greek
PXE HU - PXE Serbian
EEX Italian - PXE HU PXE HU - PXE Slovenian
EEX Italian – EEX Greek PXE HU - PXE Bulgarian
EEX Italian – PXE Slovenian
EEX Italian – PXE Serbian
Building Markets Together 2021 | Confidential © EEX AG, 2021Why Poland, Why Now and Why with EEX Group
The Home of Power Trading
Easy Access and
Proven Track Record
Standardization
- Building markets - Common clearing house
together worldwide - Cross-margining effects
- Platform efficiency - Established processes
- Local presence
Trading Community
Trust in our Product
- Diversified member
base - Utilities, hedge funds, - Open interest up to
banks, trading companies 2025
- Financial futures - Credible price signal
trading possible without
market-entry barriers
Building Markets Together 2021 | Confidential © EEX AG, 2021
Graphics provided by Slidesgo and FreepikOther Services available at EEX Group
EEX Group DataSource EEX Transparency Platform – central
Market data for Power, Natural Gas, Inside Information Platform
Environmental Markets, Agricultural Markets, Since 1st January 2021, power and gas market
Global Commodities participants must report their inside information via an
EEX transparency data for Power, Natural IIP to achieve effective disclosure
Gas, Environmental Markets, Renewables What can EEX Transparency Platform offer:
Various connectivity alternatives available Effective and timely data publication on a
providing real-time, delayed and end-of-day central IIP
data Automatic data forwarding to ACER and
Customized solutions on a white-labelled where additionally needed to NRAs and
EEX website ENTSO-E
Report efficiently and easily with the EEX
Check it out on www.eex.com / Market Data / Inside Information Messenger (web-based)
EEX Group DataSource or connect directly to our web service API
For more information please contact
support@eex-transparency.com
Building Markets Together 2021 | Confidential © EEX AG, 2021 11Thank you very much for your attention. Dina Lašová, Head of Sales and Customer Relations, Power Exchange Central Europe, Prague lasova@pxe.cz
EPEX SPOT
Power for Today. Power for Tomorrow.
Join us in Poland
April 2021
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021Agenda
1. Introducing the Polish market and EPEX SPOT offer
2. Day-Ahead auction
3. Clearing & settlement services
4. Transparency & market data services
5. How to get started for trading in Poland – Sign up to
trade – Try for free!
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021Introducing the Polish market
and EPEX SPOT offer
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021Polish power market update 1. Fuel mix and pricing situation Power production mainly (>60%) based on hard coal and lignite, making Poland one of the most expensive markets in Europe. Incredible pace of PV development ca. 9% per month (more than double last few years). Annual energy consumption >150 TWh. 2. Current and future market setup Day-Ahead Polish market coupled in the SDAC via the Baltic cable – Multi-NEMO Arrangements went live in February 2021. EPEX SPOT bringing its pan-European membership to Poland – bringing increased diversity of interests to the market. The Interim ATC Market Coupling project is foreseen for June 2021 and will include the Poland-Germany and Polish Southern borders. This means that as of this market coupling go-live, Poland will be directly coupled with Germany/MRC and the 4MMC region into a single pan-European auction at 12:00 CET (4MMC auction is currently held at 11:00 CET). Read more here. CORE Flow-Based Market coupling go-live is expected in 2022; Intraday Polish market has been coupled in the SIDC since 2019. 3. Obligation to trade through an exchange Today, all large power producers (>50MW installed capacity, RES and CHPs exempted) must sell all its production through a power exchange. There are ongoing discussions regarding whether or not to abandon this obligation Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 16
Our one-stop-shop offering
DAY-AHEAD INTRADAY
FUTURES MARKET AUCTION CONTINUOUS AFTER-MARKET
Years/Quarters/Months One day Until delivery After delivery
before delivery before delivery
HEDGE fluctuations Value PRODUCTION Value FLEXIBILITY Manage IMBALANCES
CONSUMPTION
Integrated & Secure Clearing Solution
RICHEST REMIT TRANSPARENCY
MARKET DATA OFFER REPORTING SERVICES (UMM,…)
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 17EPEX SPOT market trends
Proven technical
615 TWh performance
Largest Intraday
market in Europe with
traded in 2020 on all
spot markets
adapted to new market behaviour
111 TWh
DAILY AVERAGE NUMBER OF traded in 2020
SUBMITTED ORDERS (THOUSANDS)
— —
+4% Y2Y +21% Y2Y
300+ Trading Success of 15-min products
—
26% of German intraday volumes traded on
Members 15-min contracts in 2020
—
13 markets operated 26%
Jan ’17 Nov ’20
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 18Continued growth on the Polish Day-Ahead market
Day-Ahead MWh EPEX SPOT Traded Volume in Poland
227.4 GWh 8,000.00
traded in total since 7,000.00
go-live
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
EPEX SPOT went
1,000.00
live on 9 Feb 2021
in Poland 0.00
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 19Polish MRC Day-Ahead Innovating the Polish
auction (at 12:00 CET) Intraday continuous
Benefit from
Single robust Day-Ahead —
price is fully preserved Liquidity from day 1 fully secured with SIDC
—
Based on the Polish Multi-NEMO
Arrangements, API access with best-in-class API solutions
a single regional Day-Ahead price is
secured amongst all NEMOs Most performant Intraday market
Benefit from Advanced order types
to support smart trading
—
—
Liquidity from day 1 guaranteed
API access with best-in-class API solutions • Immediate or cancel (IOC)
• Fill or Kill (FOK)
Unique products fitting the Polish energy mix • All or None (AON)
Physical Fulfillment of EEX derivative contracts • Baskets and Baskets linked FOK
• Iceberg orders
(targeted in 2021)
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 20Day-Ahead auction Building Markets Together 2021 | Confidential © EPEX SPOT, 2021
Unique blocks to perfectly fit your energy mix
Orders types
— Linked blocks
• Loop blocks to optimize your storage facilities
• Curtailable blocks providing additional flexibility to thermal units
• Linked blocks to sophisticate your optimization strategy
• Large blocks to value large assets
Curtailable blocks
Coal
Polish forecast
share of energy Renewables & Waste
sources
Natural gas
(2020)
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 22How does EPEX SPOT’s Day-Ahead Auction offer
compare against competitors’
A superior offer in terms of blocks volume
EPEX SPOT Competition
800 MW
500 MW
300 MW
None
Volume of classic blocks Volume of big blocks
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 23Clearing & Settlement Services Building Markets Together 2021 | Confidential © EPEX SPOT, 2021
One clearing setup with ECC for all of your markets Safe & Cost Efficient Solutions — Strong protection against counterparty risks • Default-fund and five lines of defense • EMIR-certified clearing model — Fast and safe financial settlement • D+1 settlement cycle for both Day-Ahead and Intraday markets — Cross-margining savings • Cross-margining accross markets and products cleared by ECC (EEX commodities for Poland) Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 25
Transparency & Market Data services Building Markets Together 2021 | Confidential © EPEX SPOT, 2021
Transparency services for fair and efficient markets
Market
Expert
Surveillance
to build trust & confidence
—
• Highest Market Surveillance standards
• Millions of orders a day screened
• Expertise on new algo trading practices
• Trusted network of European authorities
Market Data service
increasing transparency & efficiency
—
• Complete range of market data available for free via the FTP server
• Unique real-time data access service available
• Certified REMIT reporting services
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 27Website Polish market data is available via our website in different view formats: map, table, graph, with history of data available to EPEX members * Aggregated Curves are initially not displayed in order to ensure the anonymity of the trades; all NEMOs Aggregated Curves publication are being developed for 2021. Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 28
How to trade in Poland Building Markets Together 2021 | Confidential © EPEX SPOT, 2021
HOW TO TRADE IN POLAND – Requirements I
1. TRANSMISSION AGREEMENT
Default option: Sign the Contract on Provision of Electricity Transmission Services Documents in Polish: Wzory wniosków i umów
with the Polish TSO, Polskie Sieci Elektroenergetyczne (PSE) Documents in English: Agreements and
applications templates
Alternative Option: Third-party balancing agreement usage
2. LOCAL TRADING LICENSE
Register with the Polish government to obtain the local trading license if needed. Click here for more information
3. WIRE PROTOCOL FOR NOMINATIONS
Option 1: Develop and install your own WIRE nomination system Click here for more information (in Polish)
Option 2: Purchase an SaaS solution with an external service provider Contact: sales@epexspot.com
Alternative Option: Together with the third-party balancing agreement usage
nominations are done through the balancing agreement owner
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 30HOW TO TRADE IN POLAND – Requirements II
EPEX SPOT ADMISSION
Contact us at sales@epexspot.com to find the membership type & setup that suits your needs
Fill in the “Know your customer” questionnaire
Submit admission documents to EPEX SPOT & ECC
Pass the trader exam
CLEARING
Find a clearing bank Visit: ECC’s Website
Any questions? Simply contact sales@epexspot.com and a key account manager will guide you through the process!
If you are already an EPEX SPOT Member, simply send the relevant TAA & TP forms to EPEX & ECC
– See our Polish Member Readiness Checklist
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 31Sign up to trade in Poland – Try for FREE
Take advantage of the Fee Holidays applied for 2021
Simply download our Poland Member Readiness Checklist
If you are already trading power spot in Poland, you only need to fill in the EPEX TAA &
ECC TP forms.
You can sign the EPEX TAA form digitally via DocuSign using this link.
NOW also, an exclusive trial offer of 3 months Auction market data via our SFTP server
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 32Thank you for your attention!
EPEX SPOT Paris EPEX SPOT Amsterdam
5 boulevard Montmartre Quarter Plaza
75002 Paris Transformatorweg 90
France 1014 AK Amsterdam
Tel +33 1 73 03 96 00 The Netherlands
sales@epexspot.com
EPEX SPOT Berlin
EPEX SPOT London Regus at The Chancellor Office
11 Westferry Circus Rahel-Hirsch-Straße 10
Canary Wharf 10557 Berlin
London E14 4HE Germany
United Kingdom
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EPEX SPOT Bern Treesquare, Square de Meeus 5-6
Marktgasse 20 1000 Bruxelles
3011 Bern Belgium
Switzerland
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Mayerhofgasse 1/19
1040 Wien
Austria
Building Markets Together 2021 | Confidential © EPEX SPOT, 2021 33You can also read
