How is enwex calculated?
Day ahead settlement data of enwex indices using ECMWF operational gridpoint forecasts in 0.25° spatial resolution and hourly timesteps. Formula needed for calculation is completely published as a guarantee for full transparency. enwex Indices are the best compromise between simplicity and full representation of the underlying parameter. They meet its risk associated volatility and are easily applicable to other countries.
Energy weather indices (enwex) follow a new methodology on how to translate weather into tradable products.
Enwex are calculated for day ahead settlement as known from power and gas markets. They are the best compromise between simplicity and full representation of the underlying parameter. The indices meet their risk associated volatility and are easily applicable to other countries.
The method is using ECMWF operational gridpoint forecasts in 0.25° spatial resolution and hourly timesteps. Formula needed for calculation are completely published as a guarantee for full transparency.
Spatial weightings are yearly reviewed according to installed capacity data published, for Germany e.g. by Bundesnetzagentur. A full documentation also on the update procedure can be found here.
How to calculate enwex temperature
- Temperature in °C corresponds to price in €, e.g. 10,25° means 10,25€
- Price calculated out of hourly grid point forecasts for day ahead (local time) 2m temperature
- Reference locations per market using population density, e.g. for Germany
How to calculate enwex wind
The price is representing a percentage value of utilized installed capacity for a country, e.g. 30,00% means 30,00€
This similarity to previous NAREX Wind index is calculated in a significantly eased method.
Just a few representative grid points, e.g. 12 for Germany, and one formula to translate windspeed into utilization are taken into account.
Result is a method without black boxes, also allowing traders to calculate actual index values in their own spreadsheets.
How to calculate enwex solar
Solar index with its strong intraday volatility strongly preferring of the hourly granularity and MWh structure of enwex.
Spatial weighting of enwex solar follows the same rules as for enwex wind, weather parameter used is total radiation.
Differing angles and orientations of solar plants are not represented, nevertheless enwex solar reaching a very low RMSE and can easily be used to hedge PPAs, market values or capture rates.
