Energy Industry

what is energy trading

Also, some peer coalition might be allowed in the electricity retail market and work as a new business model for a very short term. In Ref. [9], a scalable and modular system is proposed and demonstrated for energy trading between prosumers. Even a novel decentralized digital currency, named after NRGcoins, is proposed by the same group of researchers to encourage prosumers to locally trade their excess energy while payments are carried out using NRGcoins. Energy commodities are the raw materials that are used to produce energy, such as oil, natural gas, and coal. Energy traders use a variety of methods to procure energy commodities, including purchasing contracts from energy producers, participating in government auctions, and trading in the energy futures market.

China stocks slide as GDP disappoints while typhoon halts Hong Kong trading – South China Morning Post

China stocks slide as GDP disappoints while typhoon halts Hong Kong trading.

Posted: Mon, 17 Jul 2023 01:36:00 GMT [source]

In addition, energy trading is a fast-paced and exciting industry, and energy traders can enjoy a high degree of job satisfaction. Energy trading is a competitive industry, and energy traders who are able to succeed can earn a high degree of respect from their peers. Our ETRM offerings are reinforced by our expertise in hedging instruments, logistics and contract management, petroleum refining, modes of energy transport, and inventory management. We enable energy traders to make superior risk-adjusted trading decisions by harmonizing systems, processes, and data. We also help traders select and implement trading platforms that address tactical needs, minimize license costs and provide scalability.


In addition, it’s quite intricate to integrate a P2P network with blockchain technology to uphold privacy. The proposed energy trading platform is proficient in trading energy without fraud, resilient, and actively promotes secure energy transactions by eliminating intermediate costs. P2P energy trading encourages consumers and prosumers to do business directly with each other. In the former centralized energy system, the operators were affected by network congestion and loss of data. In 2020, U.S. exports of energy products, equipment, and technologies totaled $123.7 billion.

Logan Energy Brief : Trading Will Commence On TSX Venture Exchange at Market Open on July 18, 2023 –

Logan Energy Brief : Trading Will Commence On TSX Venture Exchange at Market Open on July 18, 2023.

Posted: Mon, 17 Jul 2023 10:25:06 GMT [source]

These successful futures exchanges survived the Enron et al. energy-trading debacles of recent years and demonstrated their capable financial performance. These companies know how to manage their financial energy risks and have the risk-management skills that will be deployed increasingly in the emerging global environmental markets. Financial risk will be managed on established energy futures exchanges because trading debacles have taught the energy markets that financial performance is fundamentally important. While OTC brokers (such as Natsource, Evolution Markets, and CO2e) broker bilateral trades, market-making is what is lacking from the environmental financial markets. Trade in energy carriers is the process of purchasing any kind of renewable and non-renewable energy sources within the framework of exchange trade operations. An important advantage is transparent pricing, which allows companies to build long-term strategies based on a fixed price for energy resources.


Trend or momentum-based technical analysis can be a powerful way to trade energy commodities. Over recent decades, buying energy commodities at 6-month highs has produced excellent positive results, so going long on long-term bullish breakouts and using a volatility-based trailing stop has historically been profitable. Proper communication within the organization, training and immersion programs are necessary to help staff better understand technology and improve their skills. Attracting the younger generation to work in the industry and reskilling the current workforce through performance-based compensation models will enable companies to develop and attract the right talent. The SonnenCommunity was developed by SonnenBatterie, a battery manufacturer in Germany.

what is energy trading

It is a community of SonnenBatterie owners who share their energy with others at a rate provided by SonnenCommunity. With the SonnenBatterie system and photovoltaic panels, members can cover their own energy needs on sunny days and even have excess energy. This surplus energy is not fed into the power grid, but into battery energy storage units used to support the power supply of Sonnencommunity members when they cannot produce enough energy due to bad weather. To communicate and control all Sonnencommunity members, central software has been developed to balance energy supply and demand. Energy resources are an important component of exchange trading because assets in this category are of high value in the investment activities of many large private investors as well as institutional investors.

What is Energy Trading and How Does it Work?

Thus, it develops a more collaboratively environment for energy interactions among market participants. For example, reference [48] presents five various classes of collaboration in P2P energy markets for consumers of an urban area. The reliability of energy supply is a critical issue for systems that face a high level of RESs. Due to uncertainties in RESs production, it is essential to adopt appropriate strategies for increasing the ways of energy supply in the presence of RESs [49]. The P2P markets offer a uniform process by removing the potential market power related to special players. They can improve the resiliency of the grid by making energy sharing possible for different structures of the grid.

what is energy trading

In the commodity trading world, this would mean ensuring seamless integration of different technology platforms used within the company. In the wholesale markets, sellers and buyers are generating companies, electricity export/import operators, sales organizations, grid companies (in terms of purchasing electricity to cover transmission losses), and major consumers. Wholesale market entities may act as sellers and buyers of electric power and capacity. The advantage of buying gas at the exchange trading is the reduction of costs compared to OTC supplies. Besides, a purchaser under exchange contracts does not pay for the caloric value of gas. Another area of trading development is the organization of exchange trade with delivery for any month in the calendar year.


U.S. energy companies produce oil, natural gas, coal, renewable fuels, as well as electricity from clean energy sources, including wind, solar, hydropower, geothermal, and nuclear power. U.S. energy companies further transmit, distribute, and store energy through complex infrastructure networks that are supported by emerging products and services such as smart grid technologies. Addressing climate change is at the top of the global agenda, and climate action and ambition are rising. The UN’s Intergovernmental Panel on Climate Change (IPCC) estimates that annual investment of $2.4 trillion through 2035 in energy systems alone is needed to reach Paris Climate Agreement goals.

Environmental financial products for sulfur dioxide (SO2) and nitrous oxides (NOx) have been successful in controlling U.S. pollution since 1995. A $6 billion environmental market today may seem pale in comparison with a $2 trillion energy derivatives market, but the growth trajectory suggests that today’s green trading markets should be compared with 1978’s oil markets. However, this time around, maturation will be global and simultaneous as carbon-trading regimes take root in the EU, Asia, Australia, and North America. While thus far, trades for carbon dioxide have numbered only in the hundreds—with a notional value of about $500 million—estimates suggest that a $3 trillion commodity market may emerge over the next 20 years. China, India, and the African continent remain three areas fundamental-based energy commodity traders should closely monitor.

Speaking about my professional activities, I can say that I have always been attracted to the study of foreign languages, which later led me to the study of translation and linguistics. To be effective in discouraging speculation, DEV should be larger than either the RTM or the DAM price. With a deviation-penalty rate equal to twice the maximum of the RTM or DAM, Figure 14.3 shows that revenue is always maximized by bidding into the DAM with a perfect forecast. In the real-time market, operators send dispatch instructions to each generator based on actual system operating conditions in a real-time basis. Its main features include a strong market foundation and integrity, as well as a high level of transaction reliability and financial security. The possibility of any credit risks is excluded, as SICOM acts as a counterparty in each transaction.

what is energy trading
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