The European Energy Exchange (EEX) will start trading in the new Wind Power Futures product from 4 October 2016 onwards, allowing trading participants on the EEX Derivatives Market to hedge against volume risks in the generation of wind power within the German and Austrian market area.
The Wind Power Future is the second “Energiewende” product to be launched by the exchange and comes in response to the increasing challenges with regards to the energy transition, EEX said.
“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,” said Dr. Tobias Paulun, Chief Strategy Officer of EEX.
The new product is an index future for which EEX offers weekly, monthly, quarterly and annual maturities.
EEX uses the Wind Power Index for Germany and Austria calculated by EuroWind GmbH, Cologne, for the settlement.
This index describes the actual feed-in of power from wind power plants 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 of the German National Meteorological Service and the Austrian Central Institute for Meteorology and Geodynamics (ZAMG) and includes all wind power plants installed in Germany and Austria.