The transformation of European Energy Trading – an expert insight

The evolution of energy trading technology

Initially, when the markets first opened-up in the early 1990’s, market participants completed weekly planning and scheduling, using rudimentary forecasting and analysis tools. Brady had weekly definitions built into its systems for setting up weekly profiles.

Next, the market transitioned towards day-ahead planning and scheduling, with the day-ahead market being the spot market, setting the market reference price for the financial trading.

Today, we’re seeing the next step change. Intra-day markets are capturing more and more liquidity signalling that market operations are shifting granularity, coming ever closer to real-time. In addition, when we look at the balancing and frequency markets, there is also a drive towards interfacing trading systems with SCADA systems for supporting managing assets through electronic activation of accepted bids.

The role of digitalisation in European energy markets

In today’s rapidly changing markets, there are a whole range of factors happening including; advances in forecasting and analysis applications, market consolidations, competitive NEMO market operators, requirements for electronic activation of physical assets, etc… Digitalisation in the form of advanced system support with seamless integrations across multiple applications is the only way in which market participants will be able to process all of the data quickly enough and stay competitive.

Without having digitalisation as part of your core company strategy with an investment plan and roadmap for securing efficient market operations, you will be left behind…

Brady, enabling you to trade profitably

The Brady physical energy platform is one which supports physical trading on short-term markets (day-ahead/Intraday) as well as balancing markets. Our software suite includes powerful energy data management tools for calculations and meter data management with extensive back-office functions for settlement and invoicing.

The core platform has multiple market connections delivering pan-European coverage of the two main exchanges Nord Pool and EPEX, as well as being made ready for further emerging markets. In addition, it has an extensive number of TSO connectors, supporting pan-European scheduling for the majority of European countries.

Brady’s physical energy suite is largely based upon time-series management concept. This is the means for handling large volumes of data and the basis for configuring calculations. This enables the platform to configure a complex framework of advanced calculations, automating many functions, thereby delivering significant efficiency gains. Often as such, this platform becomes the central system of record for trading operations.

The system also automates the collection of meter data used in settlement and invoicing.

With its support for managing complex data and calculation frameworks as time-series, Brady’s energy software suite delivers tremendous benefits in the form of scalability and flexibility.

Brady’s energy heritage

Our heritage comes from the Nordics where we have an exceptionally strong footprint. With over 30 years’ experience in energy, we have been at the forefront of exchange market design, helping to develop the operations for the first power exchange in Europe. In addition to our understanding of the Nordic market, Brady also has a strong heritage across central Europe.  For decades we have successfully delivered a pan-European solution to customers trading in Central Europe. Outside of Europe, Brady has customers operating our physical platform for the Ontario power market in Canada.

Our platform has the flexibility to expand its current footprint, following the exciting investments into our products as a result of the recent Hannover acquisition, it is Brady’s intention to consolidate our European positioning and leverage this for looking at further core geographic market expansion.

Contact us today and let us help you to start trading more profitably.

Written by Scott Hestenes, Head of Energy Sales, Brady

Scott has over 25 years’ experience in working in energy, having been part of the industry since the early days of deregulation. Scott has worked for Brady since the acquisition of Navita in 2012. Previously to this, he started his career working for a spin-off business Hand-El Skandinavia in the mid 1990’s, transitioning into OM Group a larger international corporation in 1998, then back to the smaller expansion business Navita in 2004, Scott being one of the co-founders. During all these years, Scott has witnessed at first hand the creation of energy markets in the Nordics, across Europe and in other parts of the world, Scott has deep industry expertise.

During his time at Brady, Scott has worked closely with many of the blue-chip leaders as well as smaller players and start-ups with the European energy markets. Previous roles have included Head of Operations EDM physical trading and settlement as well as Senior OpsBoard Member. Scott manages Brady’s energy sales strategy and account management, continuing to work closely with and support customers post sale. Following Brady’s acquisition by Hanover Investors and agreed product investment strategy, Scott will be integral in product enhancement projects focusing on Brady’s short term power trading software solutions.

The transformation of European Energy Trading – an expert insight