Epex Spot: The European Power Market facilitator and beyond

1. EPEX SPOT: The European Power Market
facilitator and beyond…
CCEE – EPEX SPOT Partnership
Sao Paulo, 24 April 2013
Sandrine Wachon – Head of International Business Development
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2. 2
“The price in Germany and France actually is the reference
price for the rest of Europe. It is of an utmost importance
that this reference price comes from a transparent market
with sufficient volumes traded and with a sufficient number
of actors. I believe, strongly believe, that with proper
supervision of the exchange the price will and should be
trusted by all market participants and all political decision
makers, myself included.”
(Speech by the former European Commissioner for Energy, Andris Piebalgs,
on the joint press conference announcing the creation of EPEX SPOT on 30 May 2008)
The European Power Exchange: EPEX SPOT…
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3. 3
Agenda
1. The role of power exchanges in the European market
2. EPEX SPOT, a model to create trust and liquidity
3. And then…
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4. 4
Power exchanges: one of the pillars of the
power market
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5. 5
A Power Exchange: what for?
Power Exchanges bundle supply and demand of companies and professionals of the power business
(producers, utilities, banks, industrial consumers) and allow to create a neutral market price in a
transparent, instant and fair manner.
EPEX SPOT is a short-term (“spot”) Exchange, the delay between trading and delivery ranges from 24 hours
(Day-Ahead market) to 45 minutes (Intraday market).
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A model to create liquidity and price references
TRADING
CLEARING
DELIVERY PAYMENT
BROADCAST
Anonymous
Multilateral
Easy access
Standard Products
Reliability
Security
LIQUIDITY
Price
References
Exchanges functions in the market: What? What for?
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• These mechanisms are complementary  One finds them on the same
market segments.
Organisation of the electricity exchanges
Over The Counter (OTC) Organised Market
Products • Tailor-made • Standardised
Negotiation • Phone
• Electronic platform
• Relations
• Electronic platform
• Anonymity
• Market rules
Transparency • No • Yes
Security • Transactions not
secured
• Transactions totally
secured

8. 8
Power Exchanges in the timeline of the market
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• manages a market
• centralized and transparent ensuring liquidity and non-
discriminatory access
• supervised by a structuring regulation relying on market rules and a
strong presence of regulation authorities (AMF, CRE, SMWA,
BNETzA, ElCom, E-Control)
• and guarantees the security of transactions
• guarantees financial commitments & systematic risks
 zero credit risk
• guarantee physical commitments
 zero industrial risk
Advantages of the organized market

10. 10
Agenda
1. The role of power exchanges in the European market
2. EPEX SPOT, a model to create trust and liquidity
3. And then…
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11. 11© EPEX SPOT SE - Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE
EPEX SPOT: our objectives

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Corporate facts
60 employees
with 14 nationalities
A European success so far…
Branch in Leipzig
Based in Paris
Created in 2008
339 TWh traded in 2012205 members
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13. 13© EPEX SPOT SE – Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE
Shareholder structure: federate interests

14. 14
Overall governance and supervision
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The Exchange Council
• Official body of the Exchange
• 16 members from various sectors
• Adopts the Rules & Regulations and
trading systems of the Exchange
• Approves products and activities
• Takes position to European power
market development
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EPEX SPOT Market Surveillance: A single
point of contact for supervisory authorities
 EPEX SPOT Market Surveillance reports regularly or upon request to all
supervisory authorities
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Markets, volumes 2012 and delivery zones
Delivery zones:
 8 % increase of volume in 2012
261 TWh
+ 9 %
Intraday: 15,8 TWh (± 0 %)
17 TWh
+ 38 %
339 TWh in 2012
on all EPEX markets
61 TWh
42
00
28
00
13
00
Share of national
consumption:
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± 0 %
Intraday: 2,2 TWh (+ 28 %)

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Who are buyers and sellers on EPEX SPOT?
In total, EPEX SPOT holds 205 Exchange Members
(Day-Ahead & Intraday) as of 3 April 2013.
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Day-Ahead
Intraday

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Members of EPEX SPOT
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Who are sellers and buyers on EPEX SPOT?
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Exchange structure
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Contractual Relationships
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Agenda
1. The role of power exchanges in the European market
2. EPEX SPOT, a model to create trust and liquidity
3. And then…
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Our partnership: a sustainable commitment
Design a
Brazilian
organized
market
• Step-wise development of an organized market
• Start with a week-ahead market
• Introduce new products closer to real-time if the regulatory
environment allows it
• Customer-oriented  high level standard in terms of performances
(system, responsiveness, product design etc.)
• Lean structure .
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Clearing • Proven and efficient clearing solutions to be proposed by ECC
Building a Smart Brazilian Electricity Market

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The market results are
available on EPEX SPOT’s
Website
www.epexspot.com
For any further
information:
s.wachon@epexspot.com
Thank you for your attention!
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2001: Establishment of Powernext SA
7/2002: Merger of Energy Exchanges Frankfurt-Leipzig
12/2006: Switzerland becomes a new market
Day-Ahead volumes on all 3 hubs since 2000
9/2008: Creation of EPEX SPOT SE
1/2009: Transfer of Powernext Power Spot into EPEX SPOT SE
9/2009: Transfer of EEX Power Spot into EPEX SPOT SE
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