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The European Energy Exchange (EEX) is intensively contributing to the debate on the implementation of the energy turnaround in Germany. From its perspective as the leading market platform for energy, EEX has published a paper which outlines the key energy policy cornerstones, commenting on questions relating to the further development of power market design, the integration of renewable energies and the future of European emissions trading. In this context, a market based energy policy, which should also be aligned to Europe, forms the benchmark and the guiding principles for EEX.
The political decisions regarding the implementation of the energy turnaround have a direct impact on supply and demand and, therefore, on the trading behaviour of the more than 220 trading participants on EEX. This includes regional and supra-regional power supply companies and public utilities as well as banks and brokers but also energy-intensive industrial consumers from all over Europe. The European market is a central indicator for the status of the energy turnaround and its effects on Europe, and for making decisions regarding the future on this basis. Therefore, it has to be protected and further expanded.
The following eight cornerstones which are further explained in the paper form the reference frame for a market-based energy policy with a European alignment - regardless of the detailed design:
- Energy markets need a reliable political framework
- Commitment to free, competitive, supervised and transparent markets
- The further expansion of renewable energies should be market based
- Guarantees of origin create transparency and display the willingness to pay for green power
- Capacity mechanisms only as the ultimate ratio – no further subsidisation mechanism
- Stronger demand side management creates more flexibility on the market
- Energy policy with a European perspective
- Strengthening European emissions trading as a climate protection instrument for the 2030 target
For EEX as the most important energy trading platform in Germany and Europe, the question of power market design will be decisive for the future. “Only a power market which is based on the market, aligned to Europe and whose potential is fully utilised can provide the right incentives for investments in renewable energies, conventional back-up power plants and in new technologies for consumption management and storage”, explains Peter Reitz, CEO of EEX. He adds: “An energy policy which is unilaterally aligned to government regulation is not the right solution. It completely masks out the existing markets and leads to inefficiency, higher complexity and, as a result, higher costs which will ultimately be defrayed by the consumers.”
The energy policy cornerstones are published on the EEX website. They provide an impulse for the debate regarding the further implementation of the energy turnaround and for the dialogue with political decision makers, market players and various interest groups, particularly in the run-up to this year’s parliamentary elections in Germany.
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing (ECC). EEX is a member of Eurex Group.
