1. EXXETA
  2. /
  3. Industries
  4. /
  5. Energy
  6. /
  7. Energy Trading & Risk Management Solutions
  8. /
  9. EXXETA Algorithmic Trading Solution
  10. /
  11. Direct marketing of regenerative electricity

DIRECT MARKETING OF REGENERATIVE ELECTRICITY

Electricity from renewable sources which is not reimbursed by the German Renewable Energy Act (EEG) has to be marketed on the electricity exchange. Some energy supply companies offer marketing as a service to power plant operators. The aim of these direct marketers is to model a portfolio with renewable energies and to market it on the electricity exchange.

Practical example: Direct Marketing of Regenerative Electricity

Due to unexpected weather conditions the operator of a wind farm can feed more power into the grid – more than already has been sold the day before in day-ahead-trading. This electricity is to be sold on the intraday spot market within the trading window.

For the wind farm operator this may result in the development of an algorithm which offers the additionally obtained energy on the spot market on an hourly basis. Taking into account historic price developments, current market values and the remaining trading time, the algorithm first offers the electricity at the price of the highest profit on the market. Later on the algorithm constantly monitors the market and adapts the price to make sure the wind farm operator sells the electricity before the trading window expires.

As the wind power supply can show high gradients, electricity on the exchange is traded on a 15-minute basis. The automation of the trading in this case considerably reduces the workload.

Control over whether an order is placed on the market can remain with the trader here. The system can thus be configured in such a way that the algorithm, instead of trading independently, first places its order proposals in a sandbox, the  EXXETA Internal Market. They can therefore be confirmed and issued by a trader before they are forwarded to the external market. This mechanism takes the strain off traders when it comes to standard tasks, but still offers full control over the market events. Furthermore, the behaviour of a new algorithm can be studied for a period of time under real market conditions before it is applied entirely independently. The desired degree of automation thus remains a matter of free choice in each and every case – and is always adjustable.

With the help of the backtesting module, trading algorithms and strategies can be verified and evaluated with the help of historic data. Here the backtesting module is intended as a further, new building block of the EXXETA Algorithmic Trading Solution.

Clients of EXXETA AG can internally develop algorithms for the implementation of their own new trading strategy as quickly and flexibly as they need to, and can thus take part in the trading events in real time, without having to hand over control. The Automated Trading Extension Framework has been productively in use for this purpose for some time at, for example, Transnet BW GmbH, and is being evaluated at other companies.

 

Alongside the Automated Trading Extension Framework and the EXXETA Internal Market EXXETA AG offers support with the development of the backtesting module and flexibly configurable trading algorithms as part of the EXXETA Algorithmic Trading Solution. Furthermore, an algorithm library is being developed and continually carried forward, and this contains a series of usable algorithms for common areas of application. These algorithms can be used as a basis for client-specific further developments, amongst other things. And with the integrated and configurable EXXETA Algorithmic Trading Dashboard, the trader always maintains an overview over all the activities of the algorithms. The framework thus represents the next big step in the direction of individualisation and automation.

Get in touch

Get in touch

Sascha Gering, Director bei EXXETA

Sascha Gering

Director

+49 341 49635-242

Mail-Contact

Get in touch

X