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HomeTradingEEX to launch first pan-European Guarantees of Origin market in 2022

EEX to launch first pan-European Guarantees of Origin market in 2022

The European Power Exchange (EPEX SPOT), European Energy Exchange (EEX) and European Commodity Clearing (ECC) plan to jointly launch a pan-European market for Guarantees of Origin (GOs) as part of EEX Group’s ongoing efforts to support the energy transition with market-based instruments.

The planned GOs spot auctions will be held once a month and operated by EPEX SPOT, Europe’s leading power spot exchange, under the exchange’s membership and market rules. Clearing and settlement will be conducted by the clearing house ECC and EEX will ensure delivery through its French GO registry. The launch of the new trading products is envisaged within the second quarter of 2022, subject to successful testing and market readiness.

“EEX Group has a track record in operating registries for Guarantees of Origin and organising GO primary auctions on behalf of Member States,” said Dr Tobias Paulun, Chief Strategy Officer of EEX. “Through this launch, EEX Group is not only responding to a market’s need for a stronger and transparent price signal, but it also falls within our efforts to fight climate change through a transition to renewable energy.”

Guarantees of Origin are a tracking instrument that allows to confirm of the origin of electricity and to determine the quantity stemming from renewable production within the total of electricity that flows through the grid. This makes them an indispensable tool to promote the production and consumption of green electricity, by ensuring its traceability and enabling investments into renewables. Thanks to this mechanism, European consumers subscribing to a green electricity offer with their energy provider can be assured that the exact amount of electricity they consume has been injected from renewable sources into the grid.

In the context of the energy transition, a well-functioning and exchange-based GO market bring transparency to the traded products and the technologies that are most demanded on the market.

“This is why we plan to launch the first exchange-based pan-European market for GO trading, bringing the well-known EPEX SPOT expertise to this new segment,” added Ralph Danielski, Chief Executive Officer of EPEX SPOT. “We accompany the trading community by providing high trading standards, a robust technical solution, excellent exchange services, transparency and innovation. Building sustainable markets lies at the heart of our Group efforts, and an efficient GO market will incentivise the production and use of green energy.”

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