Weather shocks, droughts and heatwaves: climate-driven volatility in electricity markets
Extreme weather is no longer just a strain on the power grid, it's becoming one of the biggest forces behind swings in electricity prices.
Extreme weather is no longer just a strain on the power grid, it's becoming one of the biggest forces behind swings in electricity prices.
Power trading has historically relied on data, but the scope of what constitutes 'useful data’ is broadening. While traditional datasets such as prices,
As renewable capacity grows across Europe, simultaneous wind and solar output can flood the market, driving down capture prices, so understanding this
In an environment where most variables, such as the amount of renewable energy generated during a certain period, are unpredictable, the ability to identify
Renewable energy relies on harnessing the power of the weather, which can result in unpredictable amounts of energy available to serve the grid, making
Renewable energy is, by its nature, intermittent. It relies on the weather to generate energy, and so it is at the mercy of natural elements. Wind energy is
In the power market, pricing is often open to extreme changes in pricing. When this occurs on the day of delivery, within a single day of trading, we call it
Renewable energy is in itself an intermittent source of power, and this unpredictability can have an effect on intraday price swings elsewhere in the market.
Power market reliability is a term frequently used on trading floors, but it’s rarely clearly defined. While everyone recognises its importance, it can have