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Exchange Council Approves The Introduction Of 15-Minute Contracts On The Belgian And Dutch Market - Trading Until Delivery To Be Launched On The German Market On 14 June 2017

Date 12/06/2017

At the quarterly meeting of the EPEX SPOT Exchange Council, the members approved the introduction of 15-minute contracts in continuous intraday trading on the Belgian and Dutch market. “These products will allow market participants to make infra-hour adjustments to their trading portfolios, in a way that is consistent with the imbalance settlement period currently applied by TenneT and Elia, the Dutch and Belgian Transmission System Operators ” explains Jonas Törnquist, COO of the European Power Exchange EPEX SPOT. “15-minute continuous contracts have seen a great success on the German, Austrian and Swiss market, with a total of 3.8 TWh traded on this segment in 2016. Market participants have expressed their wish to trade 15-minute contracts on the continuous intraday market in the Netherlands and in Belgium, which comforted us in our decision to add them to our existing product range” he says. The launch in the Netherlands is planned for Q4 2017. The exact launch period of the Belgian 15-minute product will be communicated in a timely manner.

The Council was furthermore informed about the details of the implementation of trading until delivery in the four German control zones, which is to be introduced on 14 June 2017. This means that local Intraday trading can take place until 5 minutes before delivery. The current lead-time on the German market is of 30 minutes. “The main driver of Intraday trading is the forecast of fundamentals – wind strength, sunshine hours, average temperatures. The closer trading takes place to delivery, the more precise are the forecasts on which transactions are based” says Bernhard Walter, Chairman of the EPEX SPOT Exchange Council. “The Council members are pleased with the implementation of this lead-time reduction, as it reinforces EPEX SPOT’s role as integrator of renewables into the European power market” he continues.

The second Exchange Council meeting of 2017 was held on 7 June 2017 in Leipzig and was chaired by Bernhard Walter.