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⚡ "Energy Trading: It is now Man vs. Machine"

Redefining Energy

Photo by Marga Santoso / Unsplash

Table of Contents

Hosts: Gerard Reid & Laurent Segalen
Guest: Peter Bance | CEO | Origami
Category: ⚡ Renewable Energy

Podcast’s Essential Bites:

[2:56] “The pandemic […] created absolute havoc [in the world of energy], in terms of volatility, both very high and very low prices, deeply negative in fact. So for the first time ever, in a lot of ways, it showed what the green energy systems in the future are going to look like when we're dominated by renewables on the power grids. And sometimes load goes away, then you're going to have prices tank, and they're going to go through the floor. Or the opposite, when prices go sky high when the sun isn't shining, or the wind isn't blowing, and yet everybody needs their juice. So volatility is becoming the new normal in this renewables dominated energy world. So you need to be able to dynamically adjust your position as an energy trader or some sort of market actor. So you need a powerful digital solution to help you do that.”

[5:21] “[There is] a really interesting shift in the way energy is both generated and used, who's making who's buying […] and who owns the risk is also critically important. […] So if you're a renewables business trying to make money from your assets, you're increasingly becoming a user of technology yourself […]. Same thing with PPA providers on the other side of the battlefield, is they used to be pretty simple about fixing a price or how they manage risk, but now dynamically adjusting that, using real time data is absolutely critical. So data is the new oil as they say.”

[7:49] “Traders love to have their own particular view of the market or maybe even their particular forecast that they like to use or their own trading algorithm. So what we're finding is if we can provide that basic software machinery that lets them see real time data from physical assets, or financial markets, give them a machine learning framework and a set of algorithms that they can then tailor to design their own trading strategy, […] they have an edge […]. If you think about the energy system going more and more towards what looks like an app store with technology platforms like ours, then they can develop their own secret sauce, their own private application that runs on a tech stack, which they're sharing with their fierce competitor. So they can get the best of both worlds, get access to powerful technology that they haven't had to try and build because it's hard and complicated and changes all the time.”

[9:16] “Data to energy used to be pretty boring, not much volatility, not much movement. Most of the value was measured in months or years or even decades. But now most of the value is being measured in seconds, minutes or hours, that real time data is absolutely critical. So for example, we ingest real time data from physical sources and from financial markets, but also contractual data […]. And then you put it into basically a decision engine that helps you decide what to do every second of the day.”

[12:28] “The future of power is going to be radically different [from] what we see today. And it's already changed a huge amount in the last 10 years. It used to be that the physical operations room […] doing stuff physically was completely separated from the financial kind of trading desk, and then the sales operations and customers [were] in another building entirely. So one thing we're gonna see is that those three big areas of business, the physical world […], the financial world of playing with numbers and massive flows of money, and the kind of contractual world of selling stuff to customers are all going to seamlessly convert.”

Rating: 💧💧💧

🎙️ Full Episode: Apple | Spotify
🕰️ 27 min | 🗓️ 07/15/2021
✅ Time saved: 25 min