Central and South-Eastern European Power Markets
#EuropeanExpansion - Central and South-Eastern European Power
EEX's offering for the Eastern-European power markets comprises European power futures for Bulgaria, Czech Republic, Hungary, Poland, Serbia, Slovakia, Slovenia and Romania. All products are offered with weekly, monthly, quarterly and yearly maturities.
Since the migration of Power Exchange Central Europe (PXE) products onto the EEX platform in 2017, liquidity in cleared power futures in the Central-South-Eastern-Europe region has almost doubled every year thereafter. In 2019, EEX achieved a record trading volume of 185 TWh in this region, up from 102 TWh in 2018.
To further strengthen this positive development of liquidity in the CSEE region, EEX has expanded its product offering in 2019 by launching cash-settled futures contracts for Slovenia, Serbia and Bulgaria, bringing the total number of power markets at EEX to 20.
Hungary now the 4th largest power market at EEX!
This very positive trend in volume growth was predominantly driven by the strong development of the Hungarian market, which is now the 4th largest power market in terms of traded volume on EEX’s European power derivatives platform, behind Germany, Italy and France! And with 61 TWh already traded at EEX in Hungarian Power Futures by end of Q1/2020, volumes are up already 142% against Q1/2019 and well on track for another record year.
While the Hungarian power market has already firmly established itself as liquid power derivatives market, it will likely become even more interesting to trade in 2021, when market coupling across Central Western and Central and Eastern Europe is planned to go live. This flow-based market coupling project, aiming to connect Germany, Austria, The Netherlands, Poland, Slovenia, Croatia and the 4MC bloc, namely Czech Republic, Hungary, Slovakia and Romania, is due to start mid of 2021, according to a statement from cross-border allocation office JAO in March.