Powernext Energy Savings: Launch Of The Organised Market For Energy Savings Certificates On 10th January 2012

Powernext launched the Energy Saving Certificate (in French “Certificats d’Economies d’Energie” or CEE) organised market on 10th January 2012. This launch follows a study made in close cooperation with the market actors since 2009. After a first phase of obligations (2006-2009) where the objective was largely exceeded without any heavy involvement of the market, the much more ambitious second phase (2011-2013) shows a greater development of the activity on the CEE secondary market.

Within this context, Powernext has launched an anonymous and secure multilateral spot trading platform to bring transparence and structure to a market still in its developing phase.

“We are glad to bring our expertise to the service of this ambitious challenge and to enroll Powernext in the crucial effort of protecting our environment”, asserts Jean-François Conil-Lacoste, CEO of Powernext.

This initiative allows the obligated actors (“obligés”) to comply with their regulatory requirements and the other actors to valorize their energy efficiency actions in optimal conditions. A price reference, calculated in a transparent manner from trades made on the market, is published after each trading session.

Powernext has designed a unique trading and payment/delivery system to adapt to a currently illiquid market and to actors with very different profiles.
The continuous trading process, based on Trayport technology, is organized in bi-monthly sessions of 3 hours each (2-5PM CET), thus facilitating meeting points between supply and demand in order to structure the trading of CEEs.
Transactions on Powernext Energy Savings are made within the context of a simple mechanism of prior verification of trading limits, thus preventing any purchase or sale without any funds, and result in a real time payment/delivery scheme from the CEE National Registry (EMMY) and a banking facility, in the framework of a “fiducie” (or trust fund).

“With Trayport technology already helping Powernext drive the spectacular success of their power and gas markets, we are very pleased to have our software at the heart of Powernext’s new Energy Savings Certificates market”, comments Phil Martin, Exchanges Client Manager, Trayport.

Five participants were present during the first session: Altergaz, B-ABA, CertiNergy, Poweo and SIPLEC. Other companies have started their membership process.

1000 MWh Cumac were traded during the very first session and the first published price reference is 4.45 €/MWh Cumac. The CEE measurement unit is the amount in MWh CUMAC (MWh of final energy, cumulated and present-worthed over the life of the product).

Powernext has signed a market making agreement with two members (B-ABA and CentiNergy) to enable the development and the smooth operation of the market.