At a glance
- The listing is subject to regulatory processes.
- The contracts cover Denmark, France, Germany, Italy, the Netherlands, Spain and the U.K., which together hold more than 70% of Europe's installed wind generation capacity.
- For a wind producer that has sold output forward under a fixed-price power purchase agreement, the contracts separate generation volume risk from electricity price risk.
Intercontinental Exchange plans to list 15 cash-settled wind futures on Dec. 14, settling against wind output indices published by ENWEX GmbH, ESG News reported. The listing is subject to regulatory processes.
The contracts cover Denmark, France, Germany, Italy, the Netherlands, Spain and the U.K., which together hold more than 70% of Europe's installed wind generation capacity. Depending on the country, they track onshore wind, offshore wind or both. Contract sizes and trading fees were not disclosed.
For a wind producer that has sold output forward under a fixed-price power purchase agreement, the contracts separate generation volume risk from electricity price risk. Combined with ICE's existing European power futures, a holder can hedge the two exposures independently.
ICE said the contracts are aimed at wind producers, utilities, suppliers and buyers under long-term power purchase agreements. ENWEX publishes the temperature, wind and solar indices used for settlement.
Reported by the Transition Finance desk from ESG News. Published . Corrections