Electricity for Greenchoice’s clients is being sourced via the Dutch OTC market within long-term bilateral agreements from utilities and electricity trading companies.

Due to the present high market volatility and high price levels, liquidity at the Dutch OTC market has been decreasing as players have reached risk- and exposure limits.

Greenchoice is considering to extend its electricity sourcing to the Dutch ICE Endex power exchange and the German EEX power exchange in order to enable alternative marketplaces for electricity sourcing.

Within the scope of the project, power future exchange membership requirements and benefits were assessed. Furthermore, the fundamental electricity market developments in Germany versus the Netherlands were analysed as well as cross border trading requirements and possibilities.  Finally, an integrated sourcing strategy was discussed and developed with the client, considering time horizon, OTC/exchange and Dutch/German exposure.

A detailed overview and description of the products and requirements of futures market trading at power exchange was provided. Additional the fundamental developments of the Dutch and German power markets were analysed and compared including cross border trading possibilities. Finally, a power sourcing strategy was developed.