Revolutionising intraday trading

In the current climate of an expanding renewable energy market, tight margins, and fast moving markets with limited trading windows, traders are dependent on having the correct information at hand at all times. As with all trading, the risks are high, yet decisions have to be made quickly.

As European markets move towards an asset-centric future where profits are harder to find, Powel has the track record needed for delivering the solutions participants need to excel.

For 20 years, Powel has helped its customers with all aspects of energy production. Initially focusing on renewable hydropower, over the years its solutions have evolved to enable growing renewable assets and new energy trading markets.

Added to a background in asset optimisation is new trading expertise through acquisitions including Optimization Partners in Stockholm and Delta Energy in Basel. Through our competencies in various areas within the energy sector, we are uniquely positioned to offer a competitive advantage by providing relevant insight into the physical assets behind trading activities.

The changing energy landscape and the case for an intraday market

During the last decade, we have seen a sharp rise in the use of renewable energy sources across many countries. Germany has in many ways lead this development through their Energiwende and other countries are following suit.

The EU has set a number of ambitious climate goals for all member states and consumption patterns are changing. Not only is energy consumption falling, the energy mix is also steadily changing to more renewables in favour of fossil fuels and nuclear power.

The coining of the term Energiwende, meaning energy transition, can be traced back to 1970’s Germany, with oil crisis and anti-nuclear movements demanding attention. However, it was in the beginning of this century it became a well-known term, as Germany started transitioning to environmentally sound energy sources.

Generation of most renewable energy sources are notoriously difficult to predict, the sun does not always shine when you need it to and wind predictions typically have rather large error margins.

The intraday market was established as a response to challenges that came with the rise in popularity of intermittent renewables. In the last few years, it has substantially increased in volume. Whereas previously the spot- and day ahead market were the important ones for traders, now many trading companies are focusing on the intraday market.  However in the long run, it will be hard for trading companies to make profit in the intraday market without the support of the right systems and automated processes that allow for faster placing of orders and make better decisions. Insights into both the asset and the market will become a necessity to compete in this relatively new environment.

How can Powel help you solve these challenges?

Powel recently released Powel Intraday Trading, a web-based solution connected directly to the intraday market. We know there is a demand for this type of trading interface and we believe this solution will change the way energy companies do their trading.

Directly connected to the physical electricity market, Powel Intraday Trading has the potential to replace many of the processes in existing trading systems. Through an API connection, customers will have real-time read and write access, enabling energy traders to do all their intraday trading directly from this solution.

With all relevant information in the same user-friendly interface, you are able to extract all information from your production portfolio and link that to the information from the intraday trading exchange. The end-result is that you are able to increase the speed and efficiency of your intraday trading.

Powel already has an established connection towards Nordpool and are in the final test phase for an API connection to EPEXSPOT. This will allow the solution to connect to most European intraday markets, allowing traders to be more efficient on the EPEX intraday market as well. The connection is extremely fast, so we can really offer real-time trading with this solution. Additionally, it allows you to see what happens in the market when you make your selections.

Powel Intraday Trading is platform independent and can be stored in the cloud or directly onto a company’s application servers. It can be used both for decision-support and for automatic trading.