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Industry Overview
For decades the European electricity market was characterized by independently organized national monopolies with high regulation barriers. In most countries one single vertically integrated power company dominated all important fields (power generation, transmission and distribution). Through consecutive legislative packages the European Union has gradually opened up the power sector for competition. The full integration and liberalization is still not reached, but by now there is an efficiently working European wholesale electricity market.
Electricity has become a commodity that is intensively traded on international markets.
Electricity has several similarities to traditionally traded financial assets (bonds, equities, commodities), however there are two important features that distinguishes it from them:
- 1. Electricity is produced and consumed instantly (since electricity cannot be stored in general, at least not economically and in large quantity, consequently supply and demand must be constantly balanced in real time).
- 2. Neither production nor consumption can be precisely forecasted, so there is a constant need for geographical adjustments.
The market of electricity is quite complex: there are numerous types of players, they can wear more than one hat while they are interlinked and interdependent in the same time. The next figure shows this complex relationship.
Natural gas is one of the most commonly-traded commodities out there. Being highly volatile, it presents plenty of opportunities for traders. Natural gas is currently the second most used form of energy to generate power. The popularity of natural gas has been maintained by its increased use in developing countries like China and Indonesia for the last decade or so. Natural gas is used to heat buildings, boil water, fuel vehicles, cook food, run air conditioning units and power industrial furnaces. Household appliances like a gas hob or a house’s radiators function by turning the energy supplied by natural gas into heat.
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Corporate social responsibility
With our trading skills we help energy producers, suppliers, intermediaries, and large consumers to navigate the volatile electricity markets.
Greener alternatives
Stop deforestation by planting more trees. Supporting microgreen farms with R&D.
Water issues
Protecting the oceans. Establishing water wells in the most deprived territories of Africa.
We are committed to invest part of our profit to help these initiatives.