Poles Apart: TGE has Created its Own Space in the Energy Market

Towarowa Giełda Energii (TGE) is a key institution in the Polish energy landscape. CFI talks with chief executive PIOTR ZAWISTOWSKI.

For more than two decades, TGE has been implementing innovative wholesale trading solutions focusing on energy products.

It has become a source of reference prices and reliable market information. As an industry integrator, the exchange ensures the security of trades in its markets. Thanks to its credibility, it has remained a first-choice venue.

TGE constantly develops its range of services. The Polish commodity exchange enables trading in electricity, natural gas, property rights, CO2 emission allowances, and agri-food commodities.

TGE has been leveraging its expertise is projects at European and local levels to develop a market for renewable and low-carbon gases — in particular biomethane and hydrogen.

CFI wanted to find out more, and the obvious person to fill us in was CEO Piotr Zawistowski. He has more than 20 years of experience in the energy industry. He specialises in strategic planning and management, and the identification of global markets.

His expertise, experience, and in-depth knowledge of the mechanisms of the energy markets’ functioning has been confirmed by a position on the board of the Europex, an organisation bringing together 27 energy exchanges and market operators from across Europe.

CFI: How have recent legislative changes affected TGE?

PZ: The year 2022 brought about a legislative revolution in Poland and, as a result, turned around the energy market. This was largely driven by Europe-wide trends and TGE had to face up to and adapt its operations to these regulatory changes.

Over the course of the past year, we saw a shift in the trading strategies of participants, who increasingly focused on spot, rather than forward, markets. Despite these developments, it is safe to say that the exchanges have been fulfilling their role in terms of security and transparency. The Polish commodity exchange has been the preferred trading venue for more than 20 years.

CFI: How do ESG parameters and sustainability principles affect the way your industries are run?

PZ: TGE and the GPW Group focus on shaping business in a sustainable way, while promoting responsible behaviour. That entails, among others, educating market participants and promoting value-based attitudes. In developing the ESG strategy within the GPW Group, TGE puts particular emphasis on environmental and social aspects. As the group employees mainly work remotely, regular webinars are a held to promote education and self-awareness, including topics related to physical and mental health.

CFI: How are you planning to develop the offering?

PZ: TGE has been doing that continuously, by listening to the needs of market participants and observing global trends.

Solutions for the RES sector have been implemented for some time, as exemplified by the launch in 2022 of SPOT indices based on the production profiles of wind and PV generation, and the introduction in 2023 of two new instruments in the electricity forward market: “lowPeak” and “highPeak”.

TGE representatives are involved in working groups within the framework of the Co-operation Agreement for the Development of the Biogas and Biomethane Sector in Poland and Sectoral Agreement for the Development of the Hydrogen Economy in Poland.

CFI: How does TGE approach the concept of building a common European energy market?

PZ: We have been working towards the integration of the international energy market for years, at European and regional levels.

Since 2015, the exchange has been acting as the nominated electricity market operator (NEMO) for the Polish bidding zone. It is also active on the cross-border spot market (Single Day-Ahead Coupling and Single Intraday Coupling). TGE is also active in Europex, the European Association of Energy Exchanges, where legislative changes under development will be subsequently presented to the European Commission and the European Union Agency for the Cooperation of Energy Regulators (ACER).

Work is under way on the SEEGAS project, initiated by the Energy Community. Towarowa Giełda Energii is part of this initiative, and in April we signed a Memorandum of Understanding to exchange experiences with the Moldovan state-owned company Energocom SA.

Piotr Zawistowski has held top positions in key institutions and entities related to the energy sector. He has served as chair of the Management Board of the Association of Energy Trading, is a member of the Management Board of the Polish Electricity Committee, and sits on the Supervisory Board of TGE. He is a graduate of the University of Economics and the Wrocław School of Banking.