Last week PowerBot was on tour in Budapest and we had the opportunity to present our solution at the annual HUPX workshop, which was focused on the upcoming go-live of the 2nd wave of SIDC (European Single Intraday Coupling, formerly known as XBID) on 19 of November 2019.
SIDC is a European project initiated by power exchanges and Transmission System Operators (TSOs) which currently includes twelve countries. In November, another seven countries (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Slovenia) are going to join the system. Due to the market coupling, market participants will benefit from a higher liquidity. As orders are made available on other delivery areas, if transmission capacity is available. For further information on SIDC, have a look here.
Our application specialist Maximilian Kiessler gave a short introduction of PowerBot at the workshop and had a closer look at common fields of application for algorithmic trading in the power market, which are position closing, propriety trading and flexibility marketing. Position closing, as the name already says, helps customers to avoid high costs for balance energy by automatically closing open positions in their portfolios. This is especially useful for companies with renewable generation. Propriety or prop trading, also known as speculative trading, makes use of market imperfectness and low automation of other companies and gain further earnings. Flexibility marketing enables users with flexible assets, such as gas power plants, to profit from volatility on the market and price changes around the marginal cost of their asset (see diagram below).
Besides this, Maximilian presented the PowerBot approach: our clients can either choose to use predefined algorithms or design and build their own algorithms in Python or C#, which provides maximum flexibility.
The many questions at the end showed us the high interest level towards trading automation and most of the participants agreed on the prospect, that automation is the future in power trading.
If you are interested in more information on PowerBot’s approach and regular fields of application please use the contact form below and we will answer all your questions.