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Press Release | 7 Jan 2019

Curve extension on electricity contracts up to Cal+6 and Cal+7.

Secção: 
Curve extension on electricity contracts up to Cal+6 and Cal+7.

On January 8 OMIP will launch for trading and registration futures contracts on electricity with maturity of 6 years (Cal+6) and 7 years (Cal+7). The new maturities are extendable to all electricity futures contracts listed in OMIP (Base, Peak, Solar, Forward, Swap). All of these products have subsequent clearing and settlement in OMIClear.

The extension of the curve up to Cal+7, which gives the possibility of negotiating in 2019 the annual contract due in 2026, covers electricity contracts in the Portuguese, Spanish, French and German areas, and responds to the growing interest shown by agents. It will make it possible to combine the reality of the financing needs of renewable energy projects, which entail longer-term commitments (PPA), and the large volume of renewable allowances, namely in Portugal and Spain. These PPA contracts for the purchase and sale of electricity, associated with the financing of the producer park, have durations that typically cover periods of 10 years or more. The launch of 7-year contracts and the publication of their reference prices allow agents to have additional tools in the development of their projects in the electricity market.

The launch of these new products represents OMIP and OMIClear commitment with the development of innovative solutions, adapted to the increasing importance that renewable energy sources have in energy systems. Jorge Simão, COO of OMIP, states that "OMIP will continue the work of extending the term of the electric energy futures curve, with the objective of adapting its offer to the needs of the market, namely in the financing of renewable energy projects”. "The two companies will continue to collaborate to develop solutions to meet the needs of agents participating in the electric market" added Pablo Villaplana, COO of OMIClear.