Year 2017 – the Best Year Ever For Natural Gas Trading
The Summary of the Year 2017 on the TGE's Electricity, Gas and Property Rights Markets
• In 2017, the volume of natural gas trade totalled 138,656,413 MWh, which is the best annual result ever in the history of TGE. The spot market volume of 114,664,140 MWh played a key role.
• Also the Property Rights Market saw record-breaking volume levels with the annual volume for the energy efficiency property rights reaching 399,863 toe, raising by 27 per cent year on year.
Electricity
In 2017, the volume of electricity trade at TGE totalled 111,656,505 MWh, which means a decrease by 11.8 per cent comparing to the 2016 level. On the sport market, the volume dropped by 8.6 per cent to 25,246,105 MWh. On the Day Ahead Market (DAM), the volume was 25,155,500 MWh, going down by 8.7 per cent, and on the Intraday Market it reached 90,605 MWh, up by 27.0 per cent. A decrease by 12.7 per cent was observed on the Commodity Forward Instruments Market with Physical Delivery (CFIM) where the volume totalled 86,410 MWh.
In December, the electricity trade volume totalled 13,321,363 MWh, up by 51.2 per cent comparing to December 2016. The trade on the CFIM accounted for 10,790,751 MWh (increase by 74.4 per cent YoY) and on the spot market – 2,530,612 MWh (decline by 3.7 per cent YoY).
In 2017, the weighted average price of the BASE contract on the Day Ahead Market was 157.96 PLN/MWh down up by 3.78 PLN/MWh below the 2016 level. In December, the price of this contract was 146.52 PLN/MWh, which means a MoM decrease by 25.30 PLN/MWh. On the CFIM, the price of the contract with base load delivery in 2018 (BASE_Y-18) averaged 167.50 PLN/MWh in 2017, which means a growth by 8.24 PLN/MWh comparing to the price from the quotations of the BASE_Y-17 contract in the year 2016. In December, the price of BASE_Y-18 went up against the November level by 3.43 PLN/MWh, to 177.63 PLN/MWh.
Natural Gas
The volume of transactions concluded on natural gas markets in 2017 totalled 138,656,413 MWh, which means a YoY increase by 21.1 per cent. On the Day Ahead and Intraday Market for gas (DAM&IDMg) the volume was 23,992,273 MWh going down by 2.5 per cent against the 2016 level. On the DAMg, the volume was 19,265,136 MWh (decrease by 1.9 per cent), and on the IDMg 4,727,137 MWh (decrease by 4.7 per cent). Meanwhile, the CFIMg volume went up by 27.6 per cent to 114,664,140 MWh, which is the best annual result in the history of TGE.
In December, the natural gas trade volume totalled 7,562,098 MWh, going down by 40.7 per cent comparing to December 2016. The trade on the CFIM constituted 5,419,698 MWh while the spot market accounted for 2,142,400 MWh.
In 2017, the weighted average price on the DAM&IDMg was 83.66 PLN/MWh, i.e. was higher by 12.50 PLN/MWh than in 2016. The December price went up MoM by 1.64 PLN/MWh reaching 93.60 PLN/MWh. Meanwhile, the weighted average price of the contract with delivery in 2018 (GAS_BASE_Y-18) went up to 81.79 PLN/MWh in 2017, i.e. was higher by 7.29 PLN/MWh than the corresponding price from the quotations of the GAS_BASE_Y-17 contract in the year 2016. In December, the corresponding price of GAS_BASE_Y-18 was 87.61 PLN/MWh, i.e. was higher by 0.66 PLN/MWh than in November.
Property Rights
The volume of electricity property rights traded in the last year totalled 59,092,597 MWh. This means an increase by 16.7 per cent comparing to the 2016 result. In December, the volume totalled 5,188,830 MWh, up by 29.0 per cent comparing to December 2016.
The 2017 volume for green certificates alone (PMOZE and PMOZE_A instruments on the Property Rights Market and instruments traded on the CFIM) stood at 30,055,941 MWh exceeding the 2016 level by 23.6 per cent. The volume of green certificates contracted at PRM sessions totalled 10,031,341 MWh (YoY growth by 35.9 per cent) plus 1,070,000 MWh under instruments traded on the CFIM (YoY growth by 121.5 per cent).
In 2017, the weighted average price for the PMOZE_A instrument traded during the PRM sessions was 38.83 PLN/MWh, i.e. was lower by 34.80 PLN/MWh comparing to the 2016 level. In December, the price increased comparing to the November level by 3.14 PLN/MWh, to 44.94 PLN/MWh.
Weighted average session price for the PMOZE-BIO instrument in 2017 – the first full year of its quotation – was 333.97 PLN/MWh. In December, the price went up by 1.47 PLN/MWh MoM reaching 317.95 PLN/MWh.
For the property rights related to energy efficiency, the volume traded in 2017 was 399,863 toe. This means the best result ever in the history of quotations at TGE and YoY growth by 27 per cent. The volume of the PMEF instrument traded during market sessions was 235,853 toe with the annual weighted average session price going down YoY by 283.99 PLN/toe, to 693.36 PLN/toe. In December, the price decreased against the November level by 83.57 PLN/MWh, to 385.56 PLN/MWh.
Guarantees of Origin Register
In December 2017, the volume of transactions concluded in the Guarantees of Origin Register totalled 1,212,402 MWh, with a weighted average price of 0.57 PLN/MWh. For the entire year 2017, the volume of transactions totalled 2,548,261 MWh with the weighted average price of 0.56 PLN/MWh.
Steam Coal
The steam coal price index PSCMI 1, based on the ex-works pricing data for supplied by the Industrial Development Agency (ARP) for utility and industrial power generation sector at the end of November 2017 stood at 211.41 PLN/t, which represents an increase by 1.27 comparing to October 2017, while the price per 1 GJ of electric power went up by 1.27 per cent to 9.57 PLN/GJ. Meanwhile, the PSCMI 2 index which reflects prices for industrial and municipal CHP plants increased by 1.23 per cent in the same period and was 256.65 PLN/t. The index value per unit of energy increased by 1.92 per cent reaching 10.62 PLN/GJ.
The change of monthly indices as compared to November 2016 was 21.92 PLN/t for PSCMI 1 (increase by 11.57 per cent) and 47.76 PLN/t, or 22.86 per cent, for PSCMI 2. The price per 1 GJ increased YoY, respectively, by 0.92 PLN/GJ (10.64 per cent) and 1.94 PLN/GJ (22.35 per cent).
New Participants
At the end of December, 72 companies enjoyed the status of the member of the Commodity Market (CM). As at 31 December 2017, the Certificate of Origin Register maintained by Towarowa Giełda Energii had 3,444 members with 23 of them joining in the month of December. There are 330 entities registered as the members of the Guarantees of Origin Register.
Press release (pdf).