The new legislation (EEG 2021) changes the definition of ‘power exchange’ (Strombörse), to refer to all NEMOs offering trading services in the German bidding zone, rather than the previous, much more restricted definition, which favoured the exchange registering the highest volume of trade.
This opens the door for much broader and fairer power market competition in Germany and across Europe.
Under the previous version of the law, renewable energy producers were only allowed to sell their production on one particular power exchange; the changed law eliminates this restriction. This change happens against the background of renewables generation representing an ever-increasing share of electricity production in Germany.
Welcoming the law change Dr. Birgit Kunze, Senior Legal Counsel at Nord Pool, said: “This is something we at Nord Pool have been campaigning for, for a considerable time. It opens up the German power market to true competition between power exchanges, which is good news for Nord Pool’s many central western European customers, and for end consumers too.
“Greater competition among power exchanges is more than just a European Union goal – it increases choice, allows the development of more products and services, drives innovation and can lead to lower power prices for consumers.
“With renewable power generation increasing in Germany, the entire power market must see this as a welcome step towards a level playing field between power exchanges in the German day-ahead market. We would like to thank all market participants and industry associations that have supported this important law change.”
Under the new EEG 2021 definition the relevant price (‘spot market price’ - Spotmarktpreis) for calculating the ‘market premium’ (Marktprämie) will be the pan-European Single Day Ahead Coupling (SDAC) price. Should the SDAC be decoupled, the ‘spot market price’ will be the volume weighted average price of all ‘power exchanges’.
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. The company offers day-ahead and intraday trading, clearing and settlement to customers regardless of size or location. Today 360 companies from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany, Poland, France, the Netherlands, Belgium, Austria and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. In 2019 Nord Pool had a total turnover of 494 TWh traded power. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.
Nord Pool has 25 years of power market experience built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
Oslo, 17 December 2020
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