Renewable Trading

Renewable Trading


What Is Renewable Trading?

Renewable trading involves trading in renewable resources. These are resources that can be used repeatedly and never run out because they are naturally replaced, and so have an endless supply. Examples are solar energy, wind energy, and geothermal pressure. Renewable energy trading is an emerging topic within the energy because, in many markets around the world, they fast relegating coal and nuclear power to the background of in the energy sector. It is known as the next era of power trading. Given the speed at which renewable is a great idea to find out a little more about it. Read On

Benefits of Renewable Trading

Renewable energy trading offers traders offers investors predictable, long-term, inflation-linked returns and direct significant benefit from increasing power prices. This is mainly due to the demand for clean and cheap energy which renewable energy provides. Since it exhibits low correlations to traditional assets and provides a hedge against inflation, it can also bring several diversification benefits to the investment portfolio of traders. Its capital costs are steadily declining, and the industry is expected to grow by 50% each year, so it is only a matter of time before it replaces other energy commodities.

Challenges of Renewable Trading

Regulations are some of the problems (of different hues) facing the renewable energy market. One of such challenges is the PTC and ITC extension with phase-down. They are the fundamental financial drivers for wind and solar power project development because they help sustain management and operation of renewable power generation assets. The way out of this is to compete by using Utility PPAs, Commercial & Industrial (C&I) PPAs, Energy Hedges and Proxy Revenue Swaps. Unfortunately, utility PPAs can be limited in specific markets while C&I PPAs, can take ages to close.

The supply and cost of tax equity, tariffs also drive up the costs of renewable energy products and can be discouraging to potential and current traders in the market. While the renewable market continues to grow, the removal of subsidies is a significant challenge to it.

Trends in Renewable Trading

Renewable energy trading has tremendously grown in the last decade. In 2009, they contributed about 10% of global primary fuel supplies. A decade on, and they are set to take over the energy market.

There will be increased competition among the suppliers as the prices for renewable energy sources become more competitive; suppliers will be forced to compete. Take, for example, with the decline in the price of natural gas, the wind power industry, will have to lower prices to stay competitive on the market. The solar energy sector will be slightly better off even as the hydro sector (the leading renewable energy technology) will continue to grow.

However, the demand for renewable energy will soar as efforts to reduce or minimize reliance on conventional energy resources owing to the environmental hazards associated with their exploration will be intensified. In the same vein, there will be increased governmental support in the form of tax benefits and financial incentives in nations that are bent on driving the production of renewable energy.

renewable trading

Trends in Renewable Power

More people choose renewable power over the traditional power options that used to be in high demand. The implication is that renewable energy trading can be considered the next era of power trading and for those currently in the industry, data collection, processing and reporting needs to be handled by the right software solutions. Given the trend in the industry, getting the right renewable ETRM software is a must. Enter EnHelix.

EnHelix offers a renewable ETRM with a full suite of renewal trading and transmission modules that can cater to the needs of the most complex power trading agencies. It is designed for renewal power generations companies in both regulated and non-regulated markets. The EnHelix software also provides a powerful trading platform that facilitates connection to your complex value chain. It also makes renewable energy trading easy to manage as it provides integrated operations, reduces IT costs and increases business visibility.

Renewable Trading Business Benefits

The software supports end-to-end renewal power value chain from power generation to transmission to distribution and retail. It also supports the wholesale and retail power business and inevitably influences the cost of renewable energy credit.

ctrm commodity trading
commodity trading and risk management

With the EnHelix renewable trading software, you get support for natural gas storage and transportation for power trading in addition to a scheduling system that enables traders to track scheduled volume. This solution supports natural gas and power economics modelling, asset development and engineering capital projects.

Its integration with operations for measurements and alerts provides valuable insights into various aspects of business operations and helps with your business decisions. It also offers a global view of your entire natural gas and power business and risks. That way, you are better informed and in a better position to make better business decisions. Lastly, our EnHelix software offers a secure and singular system that lowers costs and improves the productivity of your renewable trading operations.

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