ENTSOG CAM NC Monitoring Report 2016

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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

ENTSOG CAM NC Monitoring Report 2016 |