ENTSOG CAM NC Monitoring Report 2016

CAM.2: SHARE OF SECONDARY MARKET-TRADED BUNDLED CA- PACITY TO SECONDARY MARKET TRADED UNBUNDLED CAPACITY

From the table below, it is obvious that the share of bundled capacity reallocated due to second- ary market trades is marginal at only 0.38%. This is caused by the historical dominance of unbundled capacity. Before CAM NC entered into force, all contracts were unbundled and the predominance of un- bundled capacity is still very clear over bundled capacity. At the same time, the offer of capacity in the secondary market normally comes from old contracts, and CAM NC only entered into force in 2015.

In the past few years, there has also been a ten- dency of network users booking capacity on a short-term basis rather than long-term behav- iour. Thus, long-term bookings are becoming less common than before CAM NC came into effect and hence, before the existence of bun- dled capacity. However, it is important to see that some bundled capacity is already being traded on the secondary market. The expectation for following years is that this ratio will increase exponentially since old unbundled contracts will end and po- tentially become replaced by bundled capacity.

CAM.5

SECONDARY MARKET

BUNDLED CAP.

511.4 MWh/h/y

FIRM CAP.

135,329.1 MWh/h/y

RATIO

0.38%

Table 3 

Image courtesy of REN

ENTSOG CAM NC Monitoring Report 2016 |

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