Polish Power Exchange (TGE) is the only licensed commodity exchange in Poland that enables trading in electricity, natural gas, and CO2 emission rights. The exchange plays a crucial role in shaping the Polish energy market, supporting market stability and promoting competition.
How Does TGE Operate?
TGE operates in several types of markets:
- Day-Ahead Market: Allows for the purchase and sale of electricity for the next day. Transactions are executed with a one-day advance notice, enabling participants to flexibly respond to changing market conditions.
- Commodity Derivatives Market: Enables the conclusion of contracts for future energy deliveries, helping manage price risk.
- Property Rights and CO2 Emission Rights Markets: Facilitate trading in environmental instruments, such as certificates of origin for renewable energy.
Operating Principles
TGE operates based on transparent rules that counteract speculation and ensure fair trading conditions. The exchange uses modern IT systems to automate processes and minimize error risks. Energy prices are set based on supply and demand, with marginal prices playing a key role in price determination.
Importance of TGE
TGE is extremely important for the Polish energy sector as it supports the development of renewable energy and promotes sustainable development. The exchange enables effective cost and risk management for businesses, ensuring price stability and energy security.
How Does TGE Support the Development of Renewable Energy in Poland?
TGE supports the development and integration of renewable energy sources in several ways:
- Trading in Certificates of Origin: TGE facilitates trading in certificates of origin, which confirm that a certain amount of energy was produced from renewable sources. This stimulates green energy development, as producers can earn additional revenue from selling these certificates.
- Long-Term Contracts: TGE offers the possibility of concluding long-term contracts for renewable energy, providing producers with certainty of stable revenues. This is particularly important for companies planning investments in new technologies or infrastructure development.
- Risk Management: The exchange provides tools for managing risks associated with market price fluctuations, helping renewable energy sector companies maintain financial stability.
- Transparency and Efficiency: TGE ensures transparent trading procedures, building trust and promoting operational efficiency in the renewable energy market.
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- Cooperation with the European Union: TGE operates in accordance with EU guidelines, supporting European goals related to increasing the share of renewable energy in the energy mix.
