13% increase in electricity trading on the Polish Power Exchange in August 2011

The total electricity trading volume on the Polish Power Exchange in August this year was 10.322 TWh, and was 12.90% higher compared to the previous month (9.142 TWh in July 2011). Compared to the same period last year, the electricity trading volume on Polish Power Exchange floor increased by 205.00%.

August also marks one year since the introduction of the so-called exchange obligation - a legal obligation to sell 15% of the produced energy through public forms of sales. This provision has proved a great success, as Polish producers quickly learned that the balance between consumers and the production sector can be assured only by an open, well-functioning energy market that ensures transparency of transactions.

“Mandatory sales through the exchange have given us the opportunity to engage in the processes taking place on the European energy market. With the increased liquidity of the exchange, it became possible to implement the market coupling mechanism on the cross-border transmission connection with Sweden. Further mergers and further steps in building a strong Polish position in the international energy market lie ahead of us“- said Grzegorz Onichimowski, CEO of the Polish Power Exchange.

In the past month once again a high share of all POLPX markets dedicated to electricity in the total hourly demand of the National Power System was recorded. On average it amounted to 70.53% (67.71% in July 2011) with a minimum of 57.46% and a maximum of 87.23%.

Day-Ahead Market (DAM)

Electricity trading in the day-ahead delivery on the POLPX trading floor amounted to 1.722 TWh in August 2011. In comparison with the preceding month the DAM trading volume increased by 8,31% and as many as by 206,15% taking year-to-year ratio in consideration. Average daily trading volume were at the level of 55,534 MWh, with a minimum value of 40.398 MWh and a maximum value of 77,342 MWh.

The monthly BASE price, counted as the by-volume-weighted average for all transactions, which had been concluded on the Day-Ahead Market, amounted to 193.93 PLN/MWh (month-to-month increase by 3.15 PLN). The monthly PEAK price, counted as the by-volume-weighted average for all transactions, which had been concluded on the Day-Ahead Market for hours between 8 a.m. and 10 p.m., amounted to 203.95 PLN/MWh (month-to-month increase by 5.68 PLN).

The DAM share in the total hourly electricity demand in the National Power System was 13.92% on average (13.06% in July 2011), with a minimum of 5.63% and a maximum of 31.57%.

Monthly Volumes (MWh)

The Commodity Derivatives Market (CDM)

In August 2011 the electricity trading volume on the Commodity Derivatives Market amounted to 8,600 TWh. It composes month-to-month increase by 13.86% and increase as many as by 204.76% taking year-to-year ratio in consideration.

Just as in July 2011, the most liquid contract was the annual contract with BASE electricity delivery profile in 2012. The total trading volume for the BASE_Y-12 contract amounted to 6,104,880 MWh (684 MW) - which composes 70.99% of the CDM total trading volume. From the beginning of trading this contract on the POLPX trading floor, the total trading volume was 44,086,896 MWh. In August 2011 the average price for the BASE_Y-12 contract was shaped at the level of 203.06 PLN/MWh (month-to-month increase by 0.08 PLN).

Monthly Volumes (MWh)

The Polish Power Exchange (the POLPX) was established at the end of 1999. Its operational activities were started on the day of June the 30^th 2000, when first contracts for delivery of electricity were concluded on so-called Day-Ahead Market. At present the POLPX runs the following markets: the Day-Ahead Market, the Commodity Derivatives Market with physical delivery, and the Property Rights Market for electricity coming from RES and CHP sources. The POLPX also keeps the Certificate of Origin Register for electricity coming from the Renewable Energy Sources and from high-efficient CHP units as well as the CO2 Emission Allowances Market.