Short term power trading

Chris Regan, Product Director, Energy Portfolio Brady Technologies (www.bradytechnologies.com) looks at short-term power trading.

“If you are a Head of Energy Trading, working at an established commodities trading business, it’s highly likely that your leadership has been considering a move into short-term power trading.  It is really a case of working out ‘when’ as opposed to ‘if’.”

“As a consequence of de-carbonization and decentralization, the traditional vertically integrated energy organization, with the majority of output in large-scale power plants at its control, is disappearing.  Trading dynamics are changing with multiple new market entrants in the form of oil and gas majors, asset developers, commercial aggregators and independent suppliers.  The demand for information transparency from asset owners is at a high.”

“The critical question you should ask yourself is, ‘how long can I watch the most volatile part of the market (i.e., intra-day) without getting involved?’”

“In the past, entering short-term power trading required significant investment in systems, knowledge and infrastructure to manage real-time physical delivery.  The larger trading service providers are no longer the ones with the best systems, most are constrained by legacy systems, but there is an alternative.”

The full blog can be found at https://bradytechnologies.com/news/trader-perspective-on-short-term-power-trading