In 2010 trading on all markets of the Polish Power Exchange showed dynamics that had been unparalleled in previous years. Within the framework of 10-year strategy (approved in 2009) the POLPX converged on electricity as the basic product. The trading volume for electricity amounted in total to 81 757 763 MWh (over 20 times more than in 2009), what composed 53% of electricity generated in Poland. Owing to such fact Poland is able to be proud of having one of the most important national exchanges in Europe (as regards the volume of transactions, which have been entered into). Within the scope we yield precedence only to such exchanges as Nordpool Spot or Epex Spot, which are multi-national exchanges after all. The year of 2011 promises to be not less dynamic as regards development of the POLPX.

The Exchange has 17 stockholders. Its value (based on Price/Profit index) is estimated at about 314 million zloty. Similar value has been also indicated by Roland Berger Strategy Consultans, which has estimated that servicing of 1% of Polish market should generate 5 million PLN in the value for the POLPX (that means about 60% of share in the National Power System demand = about 300 million zloty). The POLPX strategy assumes that it has got the status of a public company.

On the day of August the 9th 2010 the regulations updating the Power Law Act came into force. The relevant amendments oblige all power generating companies to sell 15% of generated electricity through the agency of the exchange. The regulation has appeared to be great success of the Polish electricity market, because the electricity producers put into public form of sale the electricity amount higher than the limit value determined in the Act. That was instrumental in increasing of the trading liquidity   of the POLPX that - concentrating more than 50% of electricity generated in Poland on its markets and conducting close cooperation with the market participants (PSE Operator and the Energy Regulatory Office) - was able to be instrumental in successful start of so-called "market coupling" mechanism, that means a merger of Polish and Swedish electricity markets. Within the framework of such enterprise, starting from the day of December the 15th 2010, the members of the POLPX and Scandinavian Nordpool Spot exchange obtained opportunity for sale of generated electricity on other markets or purchase of cheaper electricity on neighboring markets.

"The year of 2010 was very successful for us. The Polish Power Exchange is being developed with the rate as high as never before. But I would like to stress that our success is the success of the entire electricity market in Poland. We are the only commodity exchange in Poland, whose market participants fulfill their obligation of public sale of the electricity. Such situation evidently affects the POLPX trading volume, but first and foremost it causes increasing of the electricity market liquidity in Poland and allows us to be respected player on the European market" - Mr. Grzegorz Onichimowski the POLPX Management Board President said.

No less important event for participants of the Polish electricity market was start of activity of the Warsaw Commodity Clearing House, which obtained (in April of last year) the Polish Financial Supervision Authority permission for running the clearing- and settlement house. The permission authorizes the WCCH to conduct clearings and settlement of transactions, which are entered into on the regulated exchange markets as well as OTC deals and the financial instruments are subject of which. The WCCH is the first company existing in Poland that has got such. The WCCH also was of significant importance in the Market Coupling project, representing the POLPX's members in clearings of that market and managing the currency rate convertibility risk.

Plans for the year of 2011
This year promises to be as dynamic as the previous ones as far as the POLPX development is concerned. Within the framework of the strategy being executed, not later than in I quarter of this year it is expected that an agreement will be signed with one of companies being quoted on the Warsaw Stock Exchange and a common financial derivatives market will be started.
The plans for the closest months encompass also establishing of the POLPX's market of biomass, coal and gas. The advanced works concerning implementation of the market coupling mechanism on the Intraday Market and connection with the EU countries are also in progress.

Recapitulation of The Polish Power Exchange trading in the year of 2010, with breakage into individual markets:

The Day-Ahead Market (DAM)
Total trading on the Day-Ahead Market - the eldest market of the Polish Power Exchange, being the electricity Day-Ahead delivery market - amounted to 7 577 583 MWh. In comparison with the previous year the trading showed the trading volume increase as high as never before - by 146,59%

The DAM market prices.
The DAM is a spot type market, what means that the electricity prices on the market depend on a number of factors, which could appear suddenly (such as temperature, current demand, available production capacities). Such situation causes that the electricity price is subject to significant fluctuations, not only in hourly but daily interval as well. In 2010 the average electricity price on the DAM market amounted to 199,57 PLN/MWh. March was the month with the lowest electricity price, amounting to 179,67 PLN/MWh, while December was the month with the highest price, amounting to 220,05 PLN/MWh. Per year averaged electricity price in the year of 2010 was higher than in 2009 by 15,73%

The Commodity Derivatives Market (CDM)
In 2010 also the Commodity Derivatives Market was subject to dynamic development. The market is a platform of electricity trading for forward deliveries. In 2010 the total trading volume on the CDM market amounted to 74 147 690 MWh, while most of the contracts was closed for the year of 2011. In comparison with the year of 2009 the CDM trading volume increased by up to 11 165,44%. The most liquid contract appeared BASE_Y-11 contract that represents the electricity delivery during all hours of the day in the year of 2011. Total amount of contracted electricity was equal to 49 161 120 MWh.

The CDM market electricity prices
The average electricity price for delivery during all hours of the day in the year of 2011 fixed in transactions entered into during the previous year (that means 2010) amounted to 193,36 PLN/MWh. At present (the period between January the 1st and the 11th 2011) the Day-Ahead delivery electricity (the DAM market) is more expensive than the electricity contracted in 2011 in the forward contracts with delivery in the year of 2011 by 10,22 PLN/MWh (in average).

The Property Rights Market (PRM)
The Property rights Market is the platform for sale and purchase of the property rights under certificates of origin for electricity coming from Renewable Energy Sources, the high-efficient CHP units and from methane fired CHP units. The total trading volume on the PRM market amounted to 49 033 100 MWh (year-to-year increase by 9,98%).

Press release (Acrobat Reader) >>download