Power exchange plans make progress
The gradual development of electricity trading in Europe moved on in June with two announcements relating to the development of power exchanges in the UK and Germany.
OM, operator of the Stockholm stock exchange, announced plans to launch the UK`s first independent power exchange, while the German economics and technology ministry announced that Frankfurt should host Germany`s planned electricity exchange.
German economics and technology minister Werner Màƒ¼ller`s June 10 announcement brought an end to speculation over the other three main contenders – Dàƒ¼sseldorf, Hannover and Leipzig. The German Electricity Exchange (GEX) will be launched next year, initially offering futures contracts for delivery up to 18 months in the future.
OM`s announcement comes as a review of trading arrangements in England and Wales draws to a close. OM said the power exchange would run alongside the new trading arrangements due to be implemented next year, trading between 24 and four hours before power delivery. OM estimates that up to 20 per cent of total annual electricity sales could be transacted through a screen-based market.