What is enwex?
enwex is an index class for volume trading and the result of an initiative with the aim to mitigate increasing risks out of weather anomalies.
Why was it developed?
Enwex is the answer on reduced correlation between price and volume risks in power and gas markets. Temperature index is set up to meet demand side risks, Wind and Solar indices as instruments to hedge volatile renewable volumes as well as their cannibalization effect on power prices.
Knowledge of the enwex concept in recent months reached a market depth of 70+ companies from the Gas-, Oil- and Power Industries as well as Direct marketers and Insurance companies.
Enwex is registered as a trademark. The concept and indices have been developed by Robin Girmes. Enwex is thought as methodology transferring weather into trading products which are transparent, scalable and the best mixture of reduced complexity vs accuracy.
The daily index data and histories are provided by RM Energy Weather GmbH.
Enwex volume indices are supported by Prof. Konstantin Lenz (creator of NAREX wind index), by Enmacc GmbH, CF Flex Power GmbH and several active participants of weather derivative markets.
- Index value is the spatial temperature mean of a demand region using a handful of reference locations, weighted along population density
- Temperature in °C corresponding to price in €, e.g. 10,25° means 10,25€
enwex wind and solar
- Index represents the averaged hourly utilization of the installed capacity in a supply region, e.g. a windy day at 80% utilization translates into an index value of 80,00€.
- Countrywide index is spatially weighted out of installed capacities in % at reference locations, e.g. center of German federal states.
- Spatial weightings are yearly reviewed according to installed capacity data published by Bundesnetzagentur. A full documentation also on the update procedure can be found here
At enwex we also publish daily market values which can also be used for trading, e.g. at Flex Power’s “Power Match”
Daily settlement prices for market values are a milestone for the urgently needed chance to trade (and hedge) PPA’s.