Record-Breaking Year on Polish Power Exchange

It has been a good year for Polish Power Exchange (TGE – Towarowa Giełda Energii). Electricity and gas trade volumes on spot markets reached new highs in December 2015. The same thing can be said about the entire 2015.

The volume of gas trade on the spot market rose by astonishing 114 percent in comparison with 2014, reaching the amount of 13 925 081 MWh. The volume of electricity trade on the same market set at the level of 25 140 254 MWh, which means an increase by 5.5 percent. The total amounts of gas and electricity traded on Polish Power Exchange were 106 868 146 MWh and 186 702 484 MWh respectively.

The Major Policy Changes in Polish Power Exchange:

Another big increase could be seen in the number of Certificate of Origin holders. The Certificates of Origin Register maintained by TGE currently has 2539 members, 414 more than in the previous year. There are also seven new members of the Financial Instruments Market.

Polish Power Exchange was established in 1999, and the first auction took place in June 2000. It is currently the only commodity exchange market with a licence from Polish Financial Supervisory Authority (KNF – Komisja Nadzoru Finansowego).

It was created with the aim to grant its members liquidity of trade, security of transactions, transparency and efficiency of contracts, and equal access to information. The sole owner of Polish Power Exchange is GPW SA. (Warsaw Stock Exchange). Transactions are settled by Warsaw Commodity Clearing House.

The Exchange currently offers several markets for transactions to take place, including the day ahead market, futures market, interday market, property rights market, and exchange obligation market. Members may trade in electricity, liquid and gaseous fuels, production limits, emission allowances, and property rights. From 2005, Polish Power Exchange also maintains the Certificates of Origin Register.

Polish Power Exchange is a member of EUROPEX, an organization of European power exchanges, as well as APEx, an association of global energy exchanges and transmission system operators, and AFM, an association of futures markets.

Polish energy market is among the largest in the EU. Poland is also one of the biggest electricity consumers in the EU and one of few countries in Europe where natural gas consumption is also on the rise. Energy consumption in the country is characterized by steady growth.

Due to the planned opening of a LNG terminal in Świnoujście, an increase in natural gas supply is expected and, as a consequence, an increase in the traded volumes of gaseous fuels.