The European Energy Exchange (EEX), in collaboration with IncubEx, has successfully launched four new futures contracts on Guarantees of Origin (GO). Launched on 2 September, the new GO Futures include four separate contract types: a general contract for European renewable power GOs and three technology-specific products, for wind, hydro and solar.
The launch day saw both trading on-exchange and trade registration in the European Renewable Power GO contract. The very first trade was registered for clearing between Uniper and ENGIE in the European Renewable Power GO contract, with a volume of 50,000 GOs, brokered by ICAP. Also on Monday, EEX saw the first screen trade on the exchange in the same contract, concluded between Compagnie Nationale du Rhône and another counterparty, with a volume of 1,000 GOs. The total traded volume so far stands at 112,000 GOs.
Peter Reitz, EEX Chief Executive Officer, comments: “Our new GO Futures were developed to enable price risk hedging, increase transparency and minimise counterparty risk through standardised, cleared contracts. We’re pleased to see the high level of interest with first trades concluded both on screen and as over-the-counter trade registration.”
Morten Erik Pettersen, Director Power Trading and Optimization, Uniper says: “We are pleased to see that EEX is making an important instrument available to the market for guarantees of origin. The accessibility of a clearing mechanism removes the largest obstacles of the current market, the availability of bilateral credit lines. We believe that EEX with its new offering will contribute to the further development and strive of the market for guarantees of origin, which is essential to our ambitions to combat climate change and cover the increasing power demand.”
“We are excited to collaborate with EEX on these innovative new products and appreciate the early support from market participants,” adds Michael MacGregor, Chief Executive Officer of IncubEx. "GO futures provide valuable risk management tools for market participants including producers and consumers of renewable energy, marking a major step in the development of price discovery and liquidity further out the curve."
GO Futures are physically delivered and bring participants standardisation and price transparency while minimising counterparty risk by clearing through European Commodity Clearing (ECC). The EEX GO Futures will be listed and cleared alongside power, natural gas and European emission allowances (EUA) futures and options on EEX.
For more information on the new GO Futures please visit the EEX website.
