Blog Posts on Energy Trading

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. (Published: 19. August 2021 by Verena, Jan)
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How Does Emissions Trading Work?

How Does Emissions Trading Work? Definition The European Union Emissions Trading Scheme, also known as ETS or EU-ETS, is an instrument for reducing greenhouse gas emissions at the lowest possible economic cost. Adopted by the European Parliament and the Council of the EU in 2003, it came into force on January 1, 2005. As of More… (Published: 18. December 2020 by Kerstin Eiwen)
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What is a contract for difference?

What is a contract for difference? Definition In the energy world, contract for difference is a subsidy model in which both positive and negative deviations from a fixed reference price are paid out to the contractual partner. Contract for difference is also called symmetrical market premium. What is the best way to counter price fluctuations More… (Published: 17. September 2019 by Nils Quak)
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EPEX: data failure, decoupling, disaster?

Due to a faulty data package, the European electricity exchange EPEX in Paris decoupled the European electricity market on June 7, 2019. This caused a great deal of excitement on the markets. Johannes Päffgen, Head of Energy Trading at Next Kraftwerke, explains the causes and consequences in an interview. (Published: 24. June 2019 by Christian)
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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. History of power trading One of the earliest forms of an energy market emerged More… (Published: 30. April 2019 by Marie Volkert)
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PPA

What is a PPA (Power Purchase Agreement) ? Definition A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, More… (Published: 1. April 2019 by Nils Quak)
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Merit order

What does merit order mean? Definition In the energy industry, the term ‘merit order’ describes the sequence in which power plants are designated to deliver power, with the aim of economically optimizing the electricity supply. The merit order is based on the lowest marginal costs. These are incurred by a power plant and refer to More… (Published: 14. February 2019 by Nils Quak)
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Intraday trading

What does intraday trading mean? Definition Intraday power trading refers to continuous buying and selling of power at a power exchange that takes place on the same day as the power delivery. In Europe, the largest intraday power exchanges are the EPEX Spot (European Power Exchange Spot Market) in Paris and the Nord Pool. It can also take place in More… (Published: 14. February 2019 by Nils Quak)
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