Twenty four lines of data fit nicely onto a screen, and for traders in Nordic energy markets that spreadsheet is as familiar as their own face. They can act on an update or spot an anomaly straight away. But that ease and familiarity with both the existing market and the display will soon be more hindrance than help. The Nordic market is about to see fundamental change that will mean traders have to keep a handle on a data flow that has increased a hundred-fold – and a change that requires all that new data to be validated, absorbed and acted on faster and faster.
Why is this happening?
The Nordic market is moving from hourly to 15 minute settlement periods. In practice this is not just a single upgrade. It is part of a suite of changes that will give the Transmission System Operator the granularity it needs to manage a volatile, renewables-driven system – and that will simultaneously force market participants to act faster and with better data feeding into their decisions. It will also bring the Nordic model into harmony with the rest of Europe.
It is a test for traders
For every parameter across 24 intervals in the past there will now be the equivalent and more across 96 daily intervals; and at the same time they will have access to all those data points for a much larger number of assets, as the market is opened up to participants that have as little as 1MW to offer (down from 5-10MW now).
For traders the message is clear. They can’t rely any more on familiarity with the old system – in fact, that is a sure fire way to miss out on opportunities. They simply will not have time for copying and checking data, scrolling to reveal hidden information, collating a series of data points or finding out too late that a data field has been updated. They have to be prepared for still more data input – like weather forecasts that are constantly renewed. And they will certainly lose out if they try to work through all that before the 15 minute timer ticks down to zero: no-one wants to move on to the next trading period feeling they are still catching up on the last one.
But of course traders don’t need to waste their time on the grunt work of collating data, displaying it, flagging up data that is out of line with expectations and other spreadsheet labours. That’s best done by trusted software, so top traders can focus on what they do best: maximising value.
Change is coming
As the Nordic balancing model is implemented, there will be around a dozen changes over the next 18 months – many of which are step changes in the market. One major change is imminent, as imbalance will be moving to 15-minute periods in Q2 2023. That in itself will be a huge change for traders who are used to working with the current 1hr periods. Traders need to get ahead of the game for this faster-moving market: before they open their screens on the day after market changes take effect, they need to build their ability to interrogate the data, grab the information they need and take action.
Maximise value capture in 15 minute markets
Brady’s physical power trading operation software package ‘EDM’ has provided the necessary tools to traders in fast-moving markets for years. That extensive experience means that its users can absolutely rely on its automated services to qualify and automate data in a way that best serves its users. It is data-rich and ready for the new market and some customers are already using it that way.
Brady EDM and PowerDesk – an unrivalled proposition
Now Brady’s PowerDesk SaaS solution gives you more tools to maximise the value you can capture, as the market moves towards shorter term power trading and as more assets become available. It takes all the data from EDM and it presents it in the most beneficial ways for you, so all the data you need is at your fingertips, whether you want to look over it fast or interrogate it to resolve anomalies.
These software packages are already being used in 15-minute markets so you know they are reliable. They allow you to be proactive: if you can trust your data, display it in the way you need – and get to that place of comfort quickly – you can make fast decisions.
Don’t miss opportunities. Act now
Most importantly, the software packages are ready to install now, so you can get your training done well in advance. By the time the market’s step-changes are implemented traders will be able understand the software, trust the data and be comfortable with using the system. What might have been a potential threat – a change that forces traders to take an overly risk-averse approach and miss opportunities – becomes an opportunity, because traders have all the power they need in their software package and, crucially, they can already use it in the way they want.
This is not a time to ‘wait and see’. Before the ‘Go Day’ after a market change you need a fit-for-purpose team excited by the opportunity to unleash new tools in a familiar software package.
We are ready to go: are you?
Written by
Murray Rennie
Senior Business Analyst
About Brady Technologies
Brady Technologies (‘Brady’) provides trading, risk management and logistics software solutions to energy markets. We help energy trading participants to profit in new ways from the green transition and support ESG requirements.
Our heritage in European energy spans over 30 years. Our customers comprise some of the most renowned energy organisations in Europe, engaged in financial and physical trading on major exchanges including Nord Pool, EPEX, CME, Nasdaq and ICE, as well as OTC.
Brady solutions cater for utilities, independent power producers, asset developers, asset optimisers, energy traders, oil & gas companies, commercial aggregators and hedge funds, helping to optimise trading performance, drive greater visibility and cost control across the trade life cycle.
