Abaxx Technologies, a start-up financial software and market infrastructure company, has launched the Enwex German Wind Futures on the Abaxx Exchange, which marks the introduction of a new suite of weather derivatives.Through this, renewable energy companies will be able to hedge wind power generation risks in Germany through an exchange-traded derivative.Established in 2024, Abaxx Exchange is a Singapore-based commodities futures exchange and clearinghouse that largely focuses on physically deliverable contracts for markets within the energy transition.Weather derivatives have long assisted energy and utility companies in managing risks associated with temperature-driven demand.

However, the growth of wind generation has transitioned market volatility from demand to supply.Moreover, Abaxx’s Enwex German Wind (GWM) Futures responds to this transition, creating the first exchange-listed benchmark for handling the variability of wind generation, utilising a financially settled futures contract that is indexed to Germany’s installed capacity.The euro-denominated contracts are financially settled and indexed to Enwex Wind Germany, a forecast-based index that translates wind speed at 100m into standardised generation utilisation rates, expressed in €/MWh.

With these being weather derivative instruments, we can also assume that these will likely involve either parametric or weather index trigger contracts.Nancy Seah, CEO of Abaxx Exchange, commented: “Every new benchmark we list is built to solve a real-world challenge in price discovery or risk management.“Wind generation has become a defining variable for power market participants, and this contract gives them a precise, exchange-cleared instrument to hedge the operational realities of renewable generation and transfer wind variability into the market where it can be priced and managed.”  .

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