European Energy Exchange AG, Germany's energy exchange, is the leading energy exchange in Central Europe.

Overview

The European Energy Exchange is located in Leipzig

Leipzig

Leipzig Leipzig has always been a trade city, situated during the time of the Holy Roman Empire at the intersection of the Via Regia and Via Imperii, two important trade routes. At one time, Leipzig was one of the major European centres of learning and culture in fields such as music and publishing...

. Preceding companies were LPX Leipzig Power Exchange, located in Leipzig and European Energy Exchange, located in Frankfurt

Frankfurt

Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...

. Both exchanges merged in the year 2002.

EEX operates market platforms for trading in electric energy, natural gas,

Carbon dioxide

Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

 emission allowances and coal. EEX holds 50% of the EPEX Spot SE located in Paris which operates short-term trading in power for Germany, Austria, France and Switzerland. Furthermore EEX's subsidiary EEX Power Derivatives GmbH offers a platform for German and French power derivatives trading.

EEX is a shareholder of the North-West European trading platform European Market Coupling Company

European Market Coupling Company

European Market Coupling Company, EMCC or emcc, is a provider of congestion management services for cross-border electrical interconnectors...

.

Trading

In 2008 the trading of electricity amounted to 1319 TWh (terawatt hours), an increase of 3.6% over the previous year and amounting for more than double the German electricity consumption this year. 154 TWh (+24.8%) were traded on the spot market and 1165 TWh (+1.0%) were traded on the futures market. In the first full year of trading 17.5 TWh of gas (spot market: 1.2 TWh; derivatives: 16.3 TWh) had been traded. The volume of traded EUA tripled to 78,297,504 EUA.

Spot market

EEX operates a spot market

Spot market

The spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market in which delivery is due at a later date...

 for electricity. It provides a day ahead market in Germany and Austria. In a separate auction the prices for the Swiss market are set. Besides electricity EU allowances

EU Allowances

EU Allowances are Climate credits used in the European Union Emissions Trading Scheme . EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of...

and natural gas can also be traded on this market.

EEX provides also an intraday market. This market can be used to satisfy short-term needs of electricity or to sell short-term over capacities. Participants in the market can buy up to 75 minutes before every hour electricity for the specific hour. This market operates 24/7 without exceptions. From 15 o'clock on the electricity for the next day can be traded.

Derivatives market

For the derivatives market contracts can be made for Electricity trading up to 6 years ahead. Physically the electricity can be delivered in Germany and France. Besides electricity also emission allowances, coal, natural gas can be traded at the EEX-Derivatives market

External links

• EEX
• http://www.mondovisione.com/index.cfm?section=news&action=detail&id=87949 Recent Article about EEX with the newest numbers
• http://www.eex.com/en/EEX/EEX%20AG/Annual%20reports%20and%20accounts Annual Report 2008