Weather
Hourly indices for Temperature, Wind and Solar based on spatial weights per country
How is Enwex calculated
Day ahead settlement data of Enwex indices are calculated using the operational run of European weather model ECMWF. Its gridpoint forecasts in 0.25° spatial resolution and hourly timesteps are basis for the calculation. Formula needed for translation into wind or solar power utilization is published to grant full transparency.
Enwex indices are the best compromise between simplicity for markets and full representation of the underlying weather parameter. The result is global scalability as the methodology is easy applicable and precisely meets weather driven volatility per country.
Enwex indices are calculated as nationwide means and provide a day ahead settlement as known from power and gas markets. Hourly granularity of the indices allows the trading of multiple of hours contracts, from days to calendar years.
Driven by the very high dynamics of renewable newbuild, the spatial weightings per country and parameter are yearly reviewed according to latest publications of installed capacity and power production.
A full documentation, also on the update procedure is embedded in the Enwex rulebooks
How to calculate Enwex temperature
The temperature in °C corresponds to the price in Euro, e.g. 10,25€ means 10,25°C. The prices are calculated out of hourly grid point forecasts for day ahead 2m temperature by ECMWF weather model.
A nation or market is represented by reference locations, each of them as the weather model’s grid point situated nearest to the middle of a province. These locations are weighted by the population share per province. As a result, the Enwex methodology provides an easy approach to hedge temperature driven gas demand volatility per country or market.
How to calculate Enwex wind
Prices for wind are defined as a percentage value of utilized installed capacity for a country, e.g. 30,00% utilized installed capacity translates into 30,00€.
This relative figure of wind power is similar to other wind indices in the past, but Enwex massively simplified the calculation methodology. While accuracy is hardly impacted, wind indices by Enwex get rid of the „black box“ impression.
Just one formula is applied to the same representative grid points as for temperature and solar, the middle of each province. So windspeed forecasts for 100m height are translated into utilization figures.
As a result, the Enwex wind is meeting a very high correlation to the published wind power generation and therefore the ideal underlying for follow-up products e.g. PPA or capture rate.
How to calculate Enwex solar
The spatial weighting of Enwex solar follows the same rules as for Enwex temperature and wind, the weather model parameter used for solar is total incoming radiation.
Differing angles and orientations of solar plants are not needed, because this weather index is focusing on the volatility in average utilization per country, not per site. Nevertheless Enwex solar indices also reach very low RMSE values and besides trading the pure volume they also can be used to manage PPA positions and capture rates.
How to receive data
At enwex.com we publish the daily settlement data. For regular use cases and for analysis purposes we recommend to use Enwex data via API. A free trial can be requested via info@enwex.com
Forecast products for Enwex values or PPA price expectation are exclusively offered by Energy Weather.