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Wrma European Conference

Wrma European Conference. Toulouse October 2006. The Energy Exchange in France. is an Investment Service Provider stable and neutral shareholding with a 11.5 M € capital with robust market models and systems provides several price references

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Wrma European Conference

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  1. Wrma European Conference • Toulouse • October 2006

  2. The Energy Exchange in France • is an Investment Service Provider • stable and neutral shareholding with a 11.5 M€ capital • with robust market models and systems • provides several price references • Power short term price reference to manage the volume risk: Powernext Day-Ahead™ • Power medium term price reference to manage the price risk: Powernext Futures™ • CO2 allowances price reference to manage the greenhouse gas emissions non-compliance risk: Powernext Carbon

  3. Powernext Day-Ahead™: A Balancing liquid Market • Powernext Day-Ahead™ represents more than 70 % of balancing needs, i.e. 10% of the consumption (independently of exogenous factors), and regroups about 52 producers, consumers, banks, etc.

  4. 3 monthly contracts 4 quarterly contracts 3 yearly contracts Powernext Futures™: Managing the Price Risk with a 3-year trading horizon-23 Members

  5. Powernext Carbon: An Organized Market To Fight Climate Change-54 Members • Powernext Carbon brings and together for a double objective: • create a pricesignal to allow the actors to take rational decisions (purchase/sales of allowances, modification of production, choice of production means, investments) • provide to European companies engaged in the process of greenhouse gas emissions reduction and obligated to hold CO2 allowances matching their actual emissions, a tool to manage the “carbon risk” • Partnership with ECX/IPE, the leader EUA futures exchange with multiple assets: • concentration of liquidity and complementarity of products • marketing and commercial synergies at a European level • ability to trade from a single screen as soon as possible

  6. Our Partnership • World class national weather forecasting • Provides decision aid products for industry • Develops the computation methodology of temperature indices

  7. Powernext Weather™, an efficient forecasting tool • Powernext Weather™ observed, METEO-FRANCE is using official data.They are cleaned to get rid of any anomalies • Powernext Weather™ forecast, calculated by METEO FRANCE using the model Arpège and available on a daily basis 8am, for Day J, J+1, J+2 et J+3. This aggregated level of forecast is allowing economic agents to take better decisions with a better knowledge of the weather risk. • Agreement for the use of trademark by third parties willing to commercialized financial or insurance contracts based on the underlying value of this index.By using such an national index,aggregated and shared by a large population reflecting the activity of the economy will help to lowered their exposure to the weather risk as its cost management.

  8. Powernext Weather, weather and economic indices • Average, min and max temperature indices • Economically weather driven indices • Powernext Weather is available for : • France, Belgium, Netherlands, Portugal, UK, Germany, Switzerland, Spain and Italy • and on French regions north-west, south-west, south-east, centre-east and north-east • Observed • Forecasts J, J+1, J+2 et J+3.

  9. Powernext Weather™, Weather Indices to manage Weather risk • These indices are: • Unique: Powernext Weather™are the only European index using a weighted population correlation. • Widely correlated to the fundamentals of the energy market(power and CO2) • Efficient: • Powernext Weather™ is using data respecting international meteorological standards • The methodology is simple and reproducible. • Météo France controls the data, corrects anomalies and update missing information.

  10. Powernext Weather, weather and economic indices

  11. Powernext Weather, national and european indices • France, Belgium, Netherlands, Portugal, UK, Germany, Switzerland, Spain and Italy • Météo France computes the average, min and max temperature of the representative regions, weighted by the regions’ population • with : • ni: regional population • Ti: region i temperature • N: number of regions

  12. Example : Powernext WeatherFrance

  13. Example: Powernext WeatherGermany

  14. Powernext Weather, regional indices • The five meteorological zones • north-west (Paris) • south-west (Bordeaux) • south-east (Marseille) • centre-east (Lyon) • north-east (Strasbourg). • In each zone, all the cities present • a correlation of more than 90% • with the temperature of the reference city.

  15. Powernext Weather™ a large community Energy supplier Vendors Brokers Consultancy Insurances Banks

  16. Powernext Weather, associate members

  17. Powernext Weather France: Spread between D+1 forecast and 25-year average

  18. Powernext Weather: what info is available?

  19. Contact

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