The European Energy Exchange (EEX) and the European Power Exchange EPEX SPOT published their joint response to the consultation of the Austrian Renewable Energies Expansion Act (EAG Package). The full statement is available here (in German).
The exchanges welcome that the EAG Package largely focuses on the market integration of renewable energies. This includes the introduction of a market premium as an improvement compared to the current feed-in tariff and the increased tendering of funded projects as well as investment grants.
However, the EEX and EPEX SPOT question the planned design of the market premium as a symmetrical market premium, which hampers the market and system integration of renewable energies. The exchanges also raise concerns over introducing a rule that the market premium shall only be dispensed with if there are negative prices on the wholesale markets for six hours in a row. The two companies are also skeptical about the idea to incentivise the joint trading of electricity and guarantees of origin due to potential negative impacts on the liquidity of wholesale market.
In addition to this, EEX and EPEX SPOT urge the government to already focus on a post support-scheme era in order to prepare this important step thoroughly. They suggest to test support schemes that incentivise innovation in the energy market, limiting subsidies to a minimum while consequently extending market participation. Only by fully aligning to the market price, the activity of market
participants will benefit the overall system. Market participants must have the right incentives to bid on the wholesale market at their real marginal costs, i.e. on the basis of the merit order. As a consequence, the market price signal would remain undistorted, even if the share of renewable energies increases.
Arnold Weiss, Head of Austrian Office of EPEX SPOT, comments: “This has been the largest legislative package on the Austrian electricity market for over a decade, and it represents a decisive step towards the full integration of renewables into the Austrian power market. A market-based approach is essential to allow for a cost-efficient energy transition. Only full participation in the market allows for the generation of additional revenues while lowering the necessary subsidy schemes, with a direct reduction of costs for the Austrian end-consumer.”
Already today the innovative short-term markets of EPEX SPOT contribute largely to the integration of renewables. Performant continuous and auction-based Intraday trading, diverse 15 minute contracts and short leadtimes are important tools for actors to market renewable electricity, which is intermittent and subject to last-minute changes of generation profiles.
The European Power Exchange EPEX SPOT SE and its affiliates operate physical short-term electricity markets in Central Western Europe, the United Kingdom and in Denmark, Finland, Norway and Sweden. As part of EEX Group, a group of companies serving international commodity markets, EPEX SPOT is committed to the creation of a pan-European power market. Over 300 members trade electricity across twelve countries on EPEX SPOT. 49% of its equity is held by HGRT, a holding of transmission system operators. For more information, please visit www.epexspot.com.
The European Energy Exchange (EEX) is the leading energy exchange which develops, operates and connects secure, liquid and transparent markets for energy and commodity products around the globe. As part of EEX Group, a group of companies serving international commodity markets, it offers contracts on Power, Natural Gas and Emission Allowances as well as Freight and Agricultural Products. EEX also provides registry services as well as auctions for Guarantees of Origin, on behalf of the French State: www.eex.com
Maria Schubotz · Senior External Communications Officer
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European Energy Exchange AG · Augustusplatz 9 · 04109 Leipzig (Germany)
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