Powernext, part of EEX Group which belongs to Deutsche Börse, successfully held the first auction of Guarantees of Origin (GO) for the French State on September, 18th. Opened on September, 11th 2019 the first order book comprised 4,448 GWh of Guarantees of Origin from March and April 2019 auctioned by the DGEC (French Climate Authority). The whole volume has been sold to 25 participants.
“We are very excited to see the enthusiasm that these first GO auctions have generated, which is very promising for the next sessions. We believe that the tailor-made algorithm that we designed and developed together with our partner Artelys helps market parties to best express their needs,” comments Aude Filippi, Director of Growth Initiatives at Powernext.
The auction algorithm, specifically designed by Powernext, enables GO buyers to submit orders of varying degrees of specificity, ranging from an order on any GO to orders that are targeting a specific region or technology. Participants can even indicate preferences on a particular production plant. This helps to better align generation and consumption of renewable energy.
European Commodity Clearing (ECC), the clearing house of EEX Group, will settle all transactions arising from the GO auction.
In August 2018, the French Ministry for an Ecological and Solidary Transition appointed Powernext as the operator of this auction system, and in addition extended Powernext’s mandate to operate the national registry for GOs in France. The volume of GOs put up for sale by the DGEC will vary depending on the production generated by the plants benefiting from a support mechanism. The DGEC indicated that, for auctions held between September and December, at least half of this production will be auctioned off.
“EEX Group is committed to the energy transition and is proud to offer its market expertise to the renewable electricity sector by organizing GO auctions. We believe these auctions provide for a transparent price formation, which is beneficial to all the market actors,” adds Dr. Tobias Paulun, President of Powernext and Chief Strategy Officer of EEX.
To further promote transparency, Powernext will publish each month the auction results on its website.
On 3 September 2019, Powernext and EEX AG announced the intended merger of Powernext into EEX AG as of 1 January 2020, subject to required approvals. The operation of the GO auction together with the GO registry would legally be transferred to EEX AG.
Established in 2001, Powernext is a regulated market under French legislation. Powernext is headquartered in Paris and active across Europe. As a market facilitator Powernext develops tailormade solutions for energy markets. As part of EEX Group, a group of companies serving international commodity markets, Powernext operates the Pan-European gas platform PEGAS, as well as the registry for Guarantees of Origins, the registry for Energy Savings Certificates and the registry for Capacity Certificates for RTE. Other services include solutions for TSOs to balance natural gas. For more information: www.powernext.com