A preface by Ralph Danielski, Chief Executive Officer of EPEX SPOT
Times of turmoil remind us of the fundamental values of the European idea
If the year 2021 has taught us anything, it is to cherish what we as entire energy community have achieved.
The first reminder was also the most shocking one: The year ended with a series of events that ultimately culminated in the Russian invasion of Ukraine. This war put even more pressure on an already tense and volatile power market. It showed Europeans what we have to lose: a community of democratic countries, living peacefully, with free development of people, goods and ideas across borders. What we have gained from the European Union in terms of shared values, peace and also economic welfare is priceless. Energy has been at the core of the European idea since its very start with the Coal and Steel Community. Today, the efficiency of the EU Internal Energy Market is unparalleled. We should be proud of the achieved welfare gains all over Europe.
The energy transition depends on meaningful price signals
Another challenge the power sector has been facing was the Covid crisis, and we have felt the full force of this in 2021: With the global pickup of economic activity in the second half of the year, in combination with lower than usual generation capacities, power prices have skyrocketed. These high prices hurt end-consumers and businesses alike. Nonetheless, wholesale prices are based on fundamentals and are sending us an important message: Only by reducing our dependence on
fossil fuels, we can secure supply at reasonable prices for Europeans. Especially in a situation of scarce supply, the price formation mechanism has an essential function of information and coordination. It can reveal more efficiently than any other mechanism which use of the scarce resource energy has highest economic value. To deliberately discard or modify this information would be a huge loss. We should enshrine the powerful price signal.
With the right price signal you can make the right choices for investment, to achieve a decarbonised future.
Build on the solid foundation
My message is clear: Now is not the time to throw overboard what has been achieved. We as Europeans have too much to lose. Now is the time to not only protect what we have achieved but to make it better.
This is something we have also taken to heart during our daily work at EPEX. We constantly strive to make our services better. To our teams, quality is not only what we put into a service, but what our customers take out of it. Both with and for our members, we invest and innovate to provide trading solutions that drive forward the energy transition. Our annual track record for 2021 is impressive and we delivered on our promises. We believe our experience, expertise and range of services set EPEX apart.
We will continue to advocate for a European market setup that enables us to cultivate what makes us unique, because we have unshakeable trust in our mission: We provide the price transparency and security that energy companies need to invest with confidence. With the right price signal you can make the right choices for investment, to achieve a decarbonised future.