EFET Academy Simulation Workshop: Short Term Energy Markets

Key Learning Points:

1. Asset Backed Power Trading
2. Cross Border Trading & Optimisation

Download simulation flyer

This workshop uses the intra-day cross border simulation and provides participants with a compact yet highly informative taste of the realities of energy trading.

The intra-day cross border simulation is a visually stimulating and engaging application that gives new-comers to energy trading – an exciting, “Hands-on” introduction to the subject.

By the end of a workshop, participants with absolutely no prior knowledge of energy trading will progress to a level where they can competently: optimally dispatch assets in the market, trade in power markets, execute cross border arbitrage opportunities and importantly, minimise their CO2 production… all while maximising profit.

Five countries are modelled in the simulation: Germany, UK, France, Poland and Sweden. Each country has a different portfolio with varying generation and demand. Each country also has a spot power market in which participants can trade as well as capacity market to allow power to flow between countries.

Each portfolio has a position which participants must strive to keep balanced or otherwise face the consequences of the relevant balancing market.

The simulation allows users to learn about different asset types; in particular their fuel, flexibility, reliability and carbon emission characteristics. Participants will then apply this knowledge to building merit orders and economically trading these assets in the market place.

The simulation can be influenced by realistic market conditions. This could be the effect of the spring melt and the abundance of power from Scandinavia or the effect of high (or low) winds in Germany and the resulting price impact.

Each scenario lasts 30 minutes and places participants under tight time pressures as they try to maximise all potential opportunities in the market.

This Workshop is presented by highly experienced trader who not only explains the markets in detail – but also gives real life stories and experiences.

The application is all run from one screen. Asset management is handled on the left hand side of the screen and all trading and position balance is managed on the right hand side. The timer and profit & loss data is also located on the top right.

Moving anti-clockwise – Wind, lignite, coal, nuclear, CCGT, Hydro and a demand set make up the German portfolio. Each power plant has a different level of flexibility and carbon emissions. The white lines show any volume of power moving between countries and the direction.

The intra-day spot power market where users can trade on an hourly basis in each country. The selected hour for trading is highlighted in yellow and will only allow a transaction to take place if the trading period is still open.