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Updated: Polish indices point to lack of green electricity support - traders

29 Apr 2013 18:00:29 | edem

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(Updated throughout)

Traders active on Poland's over-the-counter (OTC) electricity market have hinted that green certificates may not be supported by looming energy legislation, citing substantial premiums being paid by buyers for exchange-traded green products.

"There has been increasing interest in buying up green certificates on the Polish exchange from renewable power generators and suppliers," one trader said on Monday.

"These people are willing to buy for much higher prices. They appear to already know that the new energy law will limit support for green and red certificates [which are awarded to combined heat and power generators]."

On Polish exchange POLPX, green certifications are traded on the Property Rights Market platform on Tuesdays and Thursdays. The latest OZEX_A index, which covers the exchange-traded green certificates, settled on Thursday at zlotych (Zl) 147.27 (€35.57). This was up significantly from Zl136.40 the preceding Tuesday and ZL128.28 the Thursday before.

Prior to this, the twice-weekly index hovered around the Zl120 mark, a pattern that backs the claims.

The next planned meeting of the energy department in the country is due to take place on 6 May, according to Polish national media. It is expected that the progress of the long-awaited energy legislation, the so-called "three pack" energy law, will be discussed.

The energy law in Poland has been previously delayed amid controversy surrounding support for different types of generation (see EDEM 28 March 2013).

And traders are now suggesting that the existing system of subsidising renewable power green certificates will lose out.

Meanwhile, Polish power exchange POLPX said on Monday it is to publish indices for OTC green certificates traded on its Property Rights Market to complement its existing OZEX_A offering. OTC trade takes place on Mondays and Wednesdays.

In addition to its existing index, the OZEX_A_TP for OTC deals, and OZEX_A_POLPX, which is a composite index for both exchange and OTC trading, will be published as of Tuesday this week.

"In response to suggestions from the market, we have developed additional indices that provide a better reflection of the renewable energy position," POLPX management board president Ireneusz Lazor said.

The traded volume on the Property Rights Market in Poland in the first quarter of this year was a touch under 24TWh, with year-on-year growth of 31%. Karolina Zagrodna

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