Vienna/Essen, April 30, 2019 – ES·FOR·IN, a European energy service provider for resellers and industrial customers, has implemented the algorithmic trading of natural gas with the autoTRADER from VisoTech. As a pioneer in automated energy trading, the company is thus also benefiting from higher reaction speeds in the natural gas sector and is exploiting optimisation opportunities on the energy exchanges.
ES·FOR·IN SE – Energy Services for Industry – headquartered in Essen specialises in energy solutions and services for energy-intensive industrial customers as an international optimisation platform. Early on, the innovative company recognised the value of algorithmic trading in energy markets, using standard strategies as well as customised algorithms. Since 2016, its customers have benefited from the fast and intelligent execution of automated trading through the Periotheus autoTRADER from VisoTech.
The speed of algorithmic trading offers strategic advantages in both the electricity and gas markets.
Integration of all business processes
ES·FOR·IN uses the complete Periotheus Platform and so has integrated all trading-related business processes. In this way the company profits from additional functions, such as integrated scheduling and balancing. ES·FOR·IN was also one of the first VisoTech customers to deploy the flexibility marketing algorithm, and participated in its development. With this functionality ES·FOR·IN is able to fully automate the supply and demand side flexibility of its customers. For example, for the aluminum manufacturer TRIMET, where power flexibility is being shifted due to intraday price developments without the need for manual interaction.
Algo-trading: strategic advantages even for gas
Like ES·FOR·IN, many companies have introduced algorithmic power trading in recent years. According to EPEX SPOT, Europe’s largest power exchange, about half of all trades are now automatically carried out through their API. The usage continues to increase. In very liquid markets, such as EPEX SPOT, traders are challenged to handle the large volume of order book events and high volatility. In less liquid markets, such as the gas market, traders need to react quickly to occasional order book events.
The natural gas markets are transforming and this is leading companies to rethink their strategies as well as the technology behind it.
“The speed of algorithmic trading offers strategic advantages in both the electricity and gas markets. This enables us to offer optimisation opportunities on the relevant energy exchanges to our customers in Germany, Austria, the Netherlands and the UK, in order to make full commercial use of prices, storage and capacity and to react faster than any manually traded market participant”, explained Christian Hövelhaus, Founder and CEO of ES·FOR·IN.
Short-term trading strategies for natural gas
The growth of renewable energy and of liquefied natural gas (LNG) increases volatility on gas markets and has led industry giants such as Norwegian Equinor to shift to a short-term trading strategy (according to a report from Reuters). PEGAS, the largest European gas exchange, has seen a tremendous increase in volume in recent years, with a spot volume of 1,111 TWh in 2018 and an annual growth rate (CAGR) of nearly 50% since 2013. ES·FOR·IN is one of the first market participants to also rely on algo-trading of gas. This gives its customers a clear lead in the gas market.
“The natural gas markets are transforming and this is leading companies to rethink their strategies as well as the technology behind it”, noted Jürgen Mayerhofer, Managing Director of VisoTech. “We see a growing interest in the algorithmic trading of natural gas. Customers such as ES·FOR·IN react quickly to developments on the market and are able to achieve positive results.”
ES·FOR·IN SE – Energy Services for Industry – is a dynamic and independent European corporation founded in 2014. The main place of business is Essen. As an optimisation platform, the company is focused on energy solutions and services for energy-intensive industrial customers.
The core team consists of accomplished energy economists. Since the liberalisation of the energy market they have gained experience in intelligent, innovative customer solutions for the electricity and natural gas requirements of large industrial customers, as well as successful implementation. In addition, in the interests of their customers they have actively shaped the energy market through companies and associations.
Rising energy costs and global competitive pressure for industry, shorter investment cycles as well as constantly changing rules for the European energy market demand extremely high flexibility from industrial customers and energy service providers. Up to now there has been no optimisation and service platform for industry. ES·FOR·IN offers such a platform and thus customised, customer-oriented supply optimisation – even internationally.
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