Renewable Energy Hedging
The increasing build-up of renewable energy generation assets creates new challenges for market participants with regards to their hedging strategies and needs.
EEX endeavours to support market participants with standardised tools for the short-term management of their portfolios, their long-term hedging needs e.g. for bilateral PPAs, or a more effective management of price risks by including weekends in peak contracts.
Available contracts on the EEX power markets include Day and Weekend Futures across multiple markets as well as extended tradable maturities of Year Futures to Cal+10. In addition, Mon-Sun Peak Futures for the Spanish power market are available.
Power Purchase Agreements (PPA) Hedging
The market for Power Purchase Agreements (PPAs) continues to grow and due to the long-term nature of PPAs, counterparties are taking on substantial risk, resulting in increased need for financial risk management. Trading at EEX increases security and standardisation of PPA hedging and provides the tools to actively support the energy transition in Europe. By hedging long-term price risk via our standard EEX power futures, we enable our members to hedge against the risk of future price changes.
The standard configuration for EEX power futures is for Base year contracts up to 6 calendar years ahead.
EEX offers tradable yearly Base maturities for German, Italian, Spanish, French, Dutch and Nordic System price Power Futures from six to ten calendar years. This enables customers to hedge their price exposure up to 10 years in advance, facilitating PPA hedging on the exchange and promoting the integration of renewable energy into the power market
Counterparties hedging on exchange also benefit from counterparty risk management by our clearing house, ECC. Support to price and manage the risks of structured PPA trades is available with the valuation and risk management tools of Lacima, part of EEX group.
Cal+10 Settlement Prices
A settlement price curve to Cal+10 is published daily for German, Italian, Spanish, French, Dutch and Nordic System power markets, bringing more price transparency to PPAs and renewable energy asset valuations. Please refer to our Market Data page for recent settlement prices.
Mon-Sun Peak Futures
EEX’s new Mon-Sun Peak Futures aim to address the growing need to hedge price risk for solar assets.
Covering a full week's power production between 8am-8pm, it better reflects the profile of continuous solar power generation compared to the standard Peak profiles, which only cover the weekdays (Mon-Fri). It thus better addresses the solar power hedgers’ needs.
The new Mon-Sun Peak Futures will be first available for the Spanish power market, with maturities covering Days up to Calendar Year Futures.
Webinar "Cal+10 and the future of renewable energy risk management"
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Risk Management
With PPAs now comprising substantial portfolios, the ability to price structured PPA trades and manage the risk for portfolios of energy trades including PPAs along with more traditional assets and standard hedge instruments, is front and centre for market participants. With its award-winning valuation and risk management solutions, Lacima - as part of EEX Group - has a range of tools to address these market needs.
Webinar with Lacima: Pricing & risk management of Power Purchase Agreements for renewables
Notice: To activate the video, please click on the picture. Please note that after activation your data will be forwarded to YouTube.