Quarter-century of electrical power - EEX aims at Brazil
Firing up the Future: Leipzig Power Exchange's Global Ambitions
Leipzig's power exchange, born 25 years ago, is aiming for global domination, with Brazil and Scandinavia top on its list of targets. "We're gunning for Brazil," EEX CEO Peter Reitz announced to the press. "In Europe, I see exciting opportunities in the Scandinavian power markets, but Asia, particularly Japan, shows a hell of a lot of potential too," he added. China? Not so much, due to the lack of free competition amongst power providers and a closed market.
The power exchange brought in nearly €670 million in revenue last year, a 16% jump from the previous year, making it the world's largest power exchange. The EEX group employs almost 1,200 individuals across 25 locations worldwide, from Denver to Tokyo.
More Than Electricity: Trading Gas and CO2 Certificates
Now, it's not just power being traded, but also gas and CO2 certificates. And the numbers are growing – fast!
Expansion Across the Globe
The EEX isn't stopping at power. It plans to conquer new territories by moving more power and gas from the over-the-counter market to the exchange. But that's not all – green hydrogen trading is in the works for the future. The platform is already in development, with early adopters on board. The first auction is planned for next year.
Eyeing Scandinavia and Asia
The Nordic region, particularly its renewable energy sector, offers significant opportunities for the EEX. The exchange is implementing tailored measures to boost liquidity in the Nordic power market to attract more participants. Meanwhile, EEX's Japanese power derivatives market has seen remarkable growth, indicating significant potential for expansion. The liberalization of Japan's energy market is making conditions ripe for increased trading activities.
A Green Future
Making steelworks and chemical factories carbon-neutral is no joke, and green hydrogen is key to achieving that goal. The EEX's focus on sustainability is apparent in local initiatives like the expansion of photovoltaic systems on municipal roofs, part of a broader global trend towards renewable energy and reduced carbon emissions.
Sources
- The European Energy Exchange (EEX) – Nordic Power Market
- EEX marks fifth anniversary of power futures market in Japan
- Leipzig's commitment to sustainability
- EEX Asian Markets Overview
- The EEX group, with its aim to conquer new territories, is planning to Renewable energy trading in Scandinavia, given the potential for growth in the region's renewable energy sector.
- In the Financial aspect, the EEX is working towards launching Green Hydrogen trading, a platform that is currently in development and aims to auction the first Green Hydrogen contracts next year.
