EEX energy bourse expects growth from new power products

By Vera Eckert

ESSEN, Germany (Reuters) - European energy bourse EEX expects new electricity forward products in the Nordic region that will go live on March 25 to help raise its future power trading volumes, its chief executive said on Tuesday.

EEX, Europe's biggest power and gas exchange, is seeking to refine trading options for power in Norway, Sweden, Finland and Denmark, where energy was deregulated in the 1990s, kickstarting a new wholesale trading industry ahead of the rest of Europe.

But now, the Nordics needed to be aligned with trade references and modalities customary in 20 other European power derivatives markets where EEX is active, CEO Peter Reitz said in an interview during the E-World trade fair.

The move is part of the bourse's global forays not just in Europe, but also in overseas markets reaching as far as Japan and the United States.

"We are in preparations with our customers to start what is called the zonal futures for the Scandinavian market next month," Reitz said.

"The contracts are a better representation of different generation mixes and the expansion of renewable energies in the region," he said.

Clients stand to gain better access to specific location and product trades from delivery points near the Arctic Circle down to Denmark's border with Germany, he said.

The plans entail weekly, monthly and annual power delivery offerings in 12 zones of the region that is powered by wind, hydroelectric and nuclear plants.

Traders will be able to exploit spread trading between the zones but also seek cross-border spread opportunities with other European power markets, and with other commodities, Reitz said.

EEX will extend available expiries for existing EEX Nordic Power Futures for another 10 years, to allow for the transition.

The EEX traded 5,185 terawatt hours (TWh) of power in Europe last year, where it turns over 60% of its global power volume.

(Reporting by Vera Eckert, editing by Sharon Singleton)