Reports ETRM in a Low Commodity Price Environment | Page 4

ETRM in a Low Commodity Price Environment

Q: What factors will impact on FUTURE Energy Commodity Prices?

Though both North American and European respondents believe Adequacy of Supply and Global or Regional
Economic Growth (driving increased demand) will be significant factors in future energy prices, Europeans also believe
Increasing Use of Renewables will have a larger effect on
those prices than do the North American respondents. This
is likely due to the price impacts that the mass introduction of
renewables have already had in specific European markets
such as Germany, a market in which negative pricing has become common.

Adequacy of Supply
Global or Regional Economic Growth
Increasing Use of Renewable Energy
Climate Change Legislation/Regulation

European respondents believe Growth of LNG will have a
much larger impact than do those in North America, not surprising given European natural gas production (North Sea)
has been in decline and it is anticipated that the continent will
depend increasingly on LNG imports for future gas supplies.
Somewhat surprising is that the Shift to Exchange-Based
Trading is ranked so low by both regions.

Growth of LNG
Energy Storage Technologies
Investment in Grid & Infrastructure
Political Decisions About Nuclear
Power
Shift to Market-Based Hub Pricing

Smart Grid & Smart Appliances
Shift to Exchange-Based Trades
Away From Bilateral OTC
1.00
1.50
2.00
2.50
Greatest
Impact
Greatest
Impact Least Impact
Least Impact

Europe

North America

Total

ETRM System Capabilities and Challenges
Q: Please rate the common challenges for ETRM Software in the current commodity price environment.

It is relatively common for multiple ETRM/CTRM solutions to be utilized by a single company, with separate applications providing coverage for specific commodities. Additionally, ETRM/CTRM systems operate at the center of an
ecosystem of data feeds, market interfaces, reporting tools
and various other applications that either send data to the
CTRM/ETRM system, or consume data from it.

Disparate Systems and System
Integration
Performance and Real-Time
Capabilities
Poor Data Quality and/or Handling
of Big Data

Both Europeans and North Americans view Disparate
Systems/Integration as being the most challenging issue in
the current environment.
Europeans ranked Real-Time Capabilities/Performance
as their second greatest challenge; North Americans ranked
it below Data Quality/Big Data. The European view is likely influenced by the emergence and growth of the real-time
power markets across the continent. The US markets, having
transitioned to real-time power markets almost two decades

© Commodity Technology Advisory LLC, 2016, All Rights Reserved.

Access to Data Insights and/
or Reporting Capabilities
Lack of Functionality

User Experience

Straight Through Processing

Europe

1.50
2.00 Challenging
2.50
More
Challenging
Less
More1.00
Challenging
Less Challenging
North America
Total

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