The European Energy Exchange EEX is set to start trading a new wind power futures product on 4 October.
Trading participants on the EEX derivatives market will be able to hedge against volume risks associated with the generation of wind power within Germany and Austria.
The Wind Power Future product is the second Energiewende product to be launched by the exchange based in Leipzig.
It comes as a response to the rising challenges of the transition to clean energy, EEX said.
In September 2015, the exchange launched trading in so-called cap futures, a derivatives market product to hedge against price peaks on the German intraday power market.
“Unlike the cap future, the wind power future addresses volume risks which arise for market participants on the day-ahead market as a result of the fluctuating feed-in of wind power,” EEX chief strategy officer Tobias Paulun said.
The new product is an index future for which EEX offers weekly, monthly, quarterly and annual maturities.
For the settlement, EEX uses the wind power index for Germany and Austria calculated by Cologne company EuroWind.
The index describes the actual feed-in of power from all the wind farms in Germany and Austria relative to the installed capacity on the basis of a model-based approach.
This so-called load factor is calculated on an annual basis from weather data.
Image: sxc
Germans eye wind futures launch
European Energy Exchange will start trading new product in October
By EBS