Ilmatar joined Nasdaq’s European Commodities market in November. What does the collaboration mean and how does it affect Ilmatar and its customers? Trading Manager Mikko Peltonen answers.
Ilmatar is a Finnish energy company and an independent power producer that focuses exclusively on renewable energy. Ilmatar was founded in 2011. Our operations range from greenfield development and construction management to operational asset management and retail sales of renewable energy as well as being a leading long-term PPA (power purchase agreement) provider in Finland. Ilmatar will develop and build more than 1,000 MW of new renewable power capacity in the Nordic countries over the next five years.
Question: What does the Nasdaq Commodities membership mean?
Answer: Ilmatar starts trading power futures in Nasdaq Commodities exchange. The future contracts are used to hedge power price. The products are available from the next day and up to ten years ahead.
Q: Why is the membership so remarkable?
A: Ilmatar is the first Finnish renewable-only power producer and sales company as a member of Nasdaq. This is a rather unique position even in the Nordic level, making Ilmatar a true forerunner in the sector. This also highlights the fact that wind power is now based on the market prices, not subsidies.
Q: What are the benefits for Ilmatar?
A: There are two major benefits. Firstly, Ilmatar is not dependent on the long-term Power Purchase Agreements (PPAs) anymore. Now Ilmatar can sell the production directly to the wholesale markets in addition to the end-customer sales.
Secondly, the market volatility is increasing. With active trading, enabled by the membership, Ilmatar can act faster on price and weather changes, and so mitigate the risks that we would be otherwise exposed to.
Q: How is Ilmatar positioned in the wholesale markets?
A: Large traditional companies have dominated the markets. Ilmatar has a clear goal to become top-3 Finnish power trader. This is enabled by Ilmatar’s personnel having a long work experience in the industry leaders from Finland and abroad.
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