EVN is a leading, international and publicly listed energy and environmental services company with headquarters in Lower Austria, the country’s largest federal province. The energy business abroad includes retailing both electricity and natural gas in Germany, electricity in Bulgaria, Macedonia, and natural gas in Croatia. Additionally, energy business includes electricity production in Macedonia. Further business activities, which EVN pursues, are the production and retail of heat in Bulgaria, the procurement of electricity, natural gas and other primary energy sources and the trade of electricity and gas on wholesale markets.
EVN’s core energy business relies on a level playing field for wholesale markets and is therefore interested in adequate liquidity and transparency not only of OTC, but also of a power exchange (PX) markets. Since organized markets (especially in the SEE region) are still in a nascent state, a comparison of PX in mature energy markets – like in CWE – and developing markets – like those in CSEE – is useful in order to speed up and improve market integration in the region.
EVN requested E-Bridge to carry out a study which aims at comparing the best practice PX in CWE with PX in the SEE region and identify potential gaps. As best-practice the EEX has been chosen for this study. The description of the market design of EEX is supplemented by certain aspects from Nordpool spot/Nasdaq. The Bulgarian PX (IBEX) and the Hungarian PX (HUPX) have been chosen in the SEE region.
E-Bridge has defined several work packages (WP) to carry out the study. In the first WP different KPIs have been defined for the comparison of PXs. For the comparison of the KPIs the data have been collected and manipulated. The comparison shows the different development of PXs for example with regard to liquidity of the market place.
In the second WP a gap analysis of the PXs in the SEE region has been carried out based on critical market design aspects. Such critical aspects could be for example a centralised clearing house for trades over PXs or a market maker who commits to provide liquidity to the market. Also standardisation of offered products and of terms and conditions is crucial for the functioning and the trustworthiness of a PX.
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Article Vigen Nikogosian, Baris Özalay, Janis Kaltschnee (E-Bridge Consulting GmbH, Bonn) and Ilona Dickschas (Siemens AG), Tim Meyerjürgens (TenneT TSO GmbH), Jens Mueller-Belau (Deutsche Shell Holding GmbH) in ew 5/2019, pages 12 ff. (German language)Download PDF