Montel Magazine 1 2022 - Uproar over green investm Montel Magazine 1 2022 - Uproar over green investm - Page 17

“ Traders are loving this uncertainty and volatility right now , partly because it ’ s easy to predict as you have a lot of people who are forced to close positions ”
estimate . “ Collaboration with our neighbours is really important . Of course it helps us at Tennet that we ’ re based in Germany as well . We have an understanding of the German context ,” says Groenenberg . The growing importance of cross-border cooperation in energy across north-western Europe was also recently highlighted in the gas market
The Dutch government is unwillingly boosting output at its Groningen gas field – which it is shutting down because of safety concerns – due to higher demand from Germany for Groningen ’ s low-calorific gas and a delay in alternative supplies . A slower-than-expected uptake in energy saving measures has meant that Germany had to raise its 2022 demand for Dutch gas by 1.1 bcm .
Meanwhile , one of the main challenges of the rise in intermittent green power production is complementing it with adequate flexibility tools that help smoothen the troughs and peaks and ultimately secure power supplies . Electric batteries and demand-side response measures are earmarked to play this role but are slow to take significant shape . “ I would say it ’ s a challenge that we can ’ t build flexibility as fast as we can build renewables . I ’ m not saying we ’ re going to see blackouts but you may see things like renewable curtailment , increased redispatch , those kinds of measures will definitely be more frequent ,” says Jean-Paul Harreman , European markets director at energy information service EnAppSys .
Yet the move to greater focus on short-term supply exacerbated by the rise in intermittent renewable energy output also provides new opportunities . Trading electricity is becoming much more about being responsive to volatile , real-time supply and demand patterns , opening the door to AI and algorithmic trading services . Tennet ’ s Groenenberg says that many traders are seeking to expand into intraday trading to better react to short-term pricing signals and that there is a lot of potential to unlock in the space .
“ This time is a goldmine . Traders are loving this uncertainty and volatility right now , partly because it ’ s easy to predict as you have a lot of people who are forced to close positions ,” says Axel Baudson , board member at power trading house European Commodities , referring to current market situation with high power price levels across the region . n
Montel Magazine 1 – 2022
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