KnowledgeElectricity MarketEnergy MarketEPEXPower tradingVPP
Futures Market
What is a Futures Market?Definition

Futures contracts are traded on a futures market. In such contracts, the contracting parties agree to postpone fulfillment to an agreed date in the future. Futures markets exist for a wide variety of contexts, from financial instruments to agricultural products and energy products.

The European energy futures market is part of the European Energy Exchange (EEX) in Leipzig and enables the trading of delivery contracts for a variety of products and commodities that are delivered at a future date. In the case of electricity, which is also traded at the EEX in Leipzig, the futures market offers producers and consumers the opportunity to plan their electricity deliveries long-term through futures contracts and to secure the price level. These futures contracts are clearly defined and obligate the contracting parties to ensure continuous offtake throughout the entire delivery period. This is also the central feature of the electricity futures market: unlike all other futures markets mentioned, there is no future settlement date defined here, but various settlement periods - making the electricity futures market more complex by one additional variable. Given sufficient liquidity, contracts with a duration of up to six years in advance can be concluded on this market. At the EEX, so-called electricity futures for 20 European markets are offered. 

In German-speaking regions, "Power Purchase Agreement" (PPA) is commonly used as a term for long-term fixed-price electricity supply contracts. However, strictly speaking, a PPA is simply a contract between two parties for the delivery or offtake of electricity, which can also occur at variable prices, such as the spot price.

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Energy BlogEnergy sectorRenewable EnergyPower tradingFlexibilityEnergy Trading
FlexAbility: How Battery Storage is Advancing the Energy Transition

Regardless of the ever changing perspectives of the debate on the energy transition, i.e. whether the current talk of the town is about achieving full supply with 100% renewable energies as quickly as possible or about what to do when PV and wind don't generate enough electricity for a couple of days or even weeks, whether it is about the right path for shutting down conventional power generators or about ramping up renewable technologies: experience shows that sooner or later we always end up with the topic of flexibility options.

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KnowledgePower marketPower tradingElectricity MarketEPEXKnowledgeEnergy Trading
Power Trading
What is Power Trading?
Definition

Power trading refers to purchasing and selling power between participants in the energy industry . Various forms of power trading are possible depending on the market design, ranging from short-term trading to long-term power purchase agreements.

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rising electricity prices at the power exchange
Energy BlogPower tradingEnergy ExchangeRenewable EnergyEnergy MarketElectricity Market
Rising Electricity Prices in Germany – a Renewables Booster

For several months, the German power exchange prices have been moving in only one direction: straight up. In an interview with our electricity trader Jan Egidi, we take a closer look at this development and talk about the implications of this trend for the German renewables industry.

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Occurence of negative electricity prices in the power system explained.
Energy BlogPower tradingEuropean gridEnergy TradingRenewable EnergyEnergy Exchange
Negative electricity prices: Fever symptoms or business as usual?

Since the beginning of the corona crisis, negative power prices have become quite common for electricity traders: In this blog, we explain how negative electricity prices develop and what is positive about them.

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Market value factors of electricity coming from solar panels.
Energy BlogForecastingPower tradingControl ReserveData analysisSolar
Sunny prospects

Good solar forecasts create significant added value. They optimize sales for photovoltaic assets, which leads to lower balancing and control reserve costs. Complicated algorithms working in the background ensure that the forecasts are as accurate as possible. They process large volumes of data from multiple sources so traders are well-positioned on the market.

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KnowledgePower tradingEnergy MarketElectricity MarketKnowledge
Energy-only Market
What is the energy-only market (EOM)?Definition

In terms of the underlying concepts, an energy-only market is the opposite of a capacity market. An energy-only market only compensates power that has been produced. A capacity market, on the other hand, compensates the mere readiness, or capacity, for power production. To ensure supply is guaranteed, the energy-only market is supplemented by various flexibility options, such as control reserve markets. Beyond that, there are usually additional reserve models similar to a capacity market aimed at guaranteeing supply.

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KnowledgeEnergy TradingEnergy ExchangeKnowledgePower trading
List of power & energy exchanges worldwide
List of power & energy exchanges worldwide

If you have additional information that may be useful to enhance this list or if you find errors in this list, please write us at info@next-kraftwerke.com. And please do also write us in case you are looking for an energy trader, we may already be active in the region you are looking for…

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Power to Gas Unit turns excess Wind Power to Hydrogen
Energy BlogPower tradingUtilityPower to GasVirtual Power PlantWind Energy
A storm turns to gas

Winter storm Axel, which set the current wind energy record in Germany, was also the source of a large wind power excess in Germany – and a considerable amount of hydrogen gas for the municipal utility company in the town of Hassfurt. There, the power-to-gas (PtG) installation, owned jointly by the city utility and Greenpeace Energy, stored the excess and particularly cheap wind energy in a matter of seconds as hydrogen wind gas.

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