Expert view | EGMA platform: Next step in CEE risk management and CEE market access
CEE (for "Certificats d'Economies d'Energie" or "Energy Savings Certificates"), are inherent to the Energy Transition market. But let’s see what they are concretely, and if they compulsory to the market
When an Energy company achieves or finances an energy saving work, it has to request an issuing document from an Administration that is qualified to evaluate the work compliance to specifications. This issuing document is called an Energy Saving Certificate, and is allocated specifically by the Administration. To sum up, CEE are final products, which represent the value chain tip of Energy Efficiency works. As compulsory documents, CEE become a full market that evolves alongside with the Energy Transition market. Now, we need to understand how this secondary market impacts Energy players.
ENGIE positioning within the CEE market
ENGIE is an ‘Obligé’ in the Energy market according to the French Administration. The ‘Obligés’ have an obligation, set by the French State, to make energy savings. Commonly speaking, the ‘Obligés’ of France are energy, fuel or heating/cooling markets actors.
As all these players have different strategies, thereby they make efforts in energy saving differently.
As a consequence, some of them produce too many CEE –the more they produce energy saving works, the more CEE are issued-, and others not enough. This imbalance brings up a supply and demand market, which is constantly expanding because the French State committed itself in an Energy Transition strategy.
This secondary market that allows to reconcile supply and demand is expanding greatly, achieving already the nominal value of 2.5 billion €. With market forecasts of 2.5 to 3 billion € in 2021, Energy market experts forecast that the next regulation phase will create a manifest increase in the near future, around 2022-2025.
This increase will result in products and exchanged products volumes hikes, which will lead to the strong need of professional services for the CEE market to help structure and reinforce the liquidity rise, and professionalize and make futures market flow better.
ENGIE is pioneer and a sine qua none player as the Group does possess the professional services needed to manage the CEE market, through its “Global Energy Management” (GEM) business unit.
The pioneering positioning of the Group in the CEE market is possible thanks to the risk management expertise of its GEM business unit
Being the midstreamer expert of the Group, GEM offers its expertise in risk management and market access, not only within the Group BUs, but also to its industrials and Energy clients, in order to professionalize and ease their market access.
With a high value market service, GEM has the purpose to increase the liquidity volume, and also ease the exchanges between the Group, its clients and the market. And thus, the BU participates in the CEE market’s evolution.
Now, do you remember the imbalance between the volume of energy savings created and the volume of CEE issued? Well, to bring the balance back, the solution is to buy CEE to cover the obligation of energy savings. However, it was not an easy nor sound process until the recent launch of the CEE marketplace called C2E Market.
This new marketplace dedicated to CEE aims to enlighten the exchanges between market players on CEE value and price, and to better understand the market risk. And this is exactly where ENGIE and GEM has all legitimacy to act. And they do so with their platform EGMA.
EGMA, the accelerator platform for the Energy Transition
As digitalization has a key role in Energy Transition, GEM’s Market Access team developed a client-centric digital transactional platform that allows the Group’s clients to work on their energy transition, relying on ENGIE’s expertise and competitive firepower.
EGMA facilitates supply and demand secured transactions of all products on the Energy Market, particularly of Environmental products like CEE, CO2 and certificates of origin, accelerating thus Energy Transition market growth.
To meet the Energy Transition market, ENGIE has known how to transform itself following its vision and strategy for the last years, with new developed competencies and cutting-hedge solutions. And as we are tending towards more digitalization for more efficiency, let’s take a bet on the next stage to focus on!
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