LONDON, March 8, 2016 /PRNewswire/ --
New report from ICIS shows stronger liquidity and shifting trends with renewable energy
Trading on the over-the-counter (OTC) European power markets increased in 2015 year on year, while the expansion of renewable energy has led to a shift in trading patterns.
Germany remains the largest electricity market in Europe, and traded volumes have begun to grow again, despite ongoing low prices.
However, French market participation has increased, and it has now overtaken the UK to become Europe's second most liquid power market.
Another trend is the move towards trading contracts for shorter and more immediate delivery. Wind and solar generation accounts for more of Europe's generation mix than ever before. The uncertainty over supply has created a greater need to trade.
"Growing trading volumes are good news, while more short-term trading shows the markets are adapting to new generation," says Zoe Double, head of power at ICIS. "The more trading in European power markets, the stronger the price signal, and the more responsive companies can be in allocating resources and spreading their risk."
European energy policy promotes energy trading, but slower economic growth across Europe in previous years and consequent lower demand has affected the amount of electricity changing hands in the markets.
Falling energy prices have also played a part - with lower prices and less volatility, some liquidity providers have chosen to focus on other areas for trade, pulling out of many European markets.
Most European power is still traded 'over-the-counter' in most power markets, although individual markets vary significantly. The European Power Trading Report uses ICIS' expertise in providing data, news and analysis to give insight into 14 different European power markets, both established trading centres and emerging markets. The report is freely available from the ICIS website.
ICIS is an independent price reporting agency focusing on global energy, petrochemical and fertilizer markets, and we have covered European electricity markets for nearly two decades. The analysis and data that we produce is widely used as a reference price in energy contracts.
It is our aim to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions.
With a global staff of more than 800, ICIS has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth. ICIS is a division of Reed Business Information, part of Reed Elsevier Plc.
About Reed Business Information
At Reed Business Information we provide information and online data services to business professionals worldwide. Customers have access to our high-value industry data, analytics, information and tools. Our strong global brands hold market-leading positions across a wide range of industry sectors including banking, petrochemicals and aviation where we help customers make key strategic decisions every day. RBI is part of Reed Elsevier, a leading global provider of data, information and solutions for professional customers.
About Reed Elsevier
Reed Elsevier is a world leading provider of information solutions for professionals. We help scientists make new discoveries, lawyers win cases, doctors save lives, corporations build commercial relationships, insurance companies assess risk, and government and financial institutions detect fraud.
Tara Sabanandan, Marketing Manager, ICIS