Vienna, January 20th 2017 – VERBUND Trading GmbH has begun using VisoTech’s Autotrader for automated intraday trading on Epex Spot. The Autotrader allows VERBUND to put its intraday traders in the position to react even quicker to the demands of the volatile market and therefore continue to achieve optimal prices. This means a further functionality of VisoTech’s Periotheus Suite will be used on top of the existing Schedule and Power Plant Management systems.
The volatility on the intraday power market has increased enormously in recent years and the situation is expected to intensify in the coming years. VERBUND Trading GmbH reacted to this development several years ago by founding a dedicated team of intraday traders. VisoTech’s Autotrader provides this team with a tool to react even quicker to the demands and in particular the short-term nature of the intraday market, allowing the traders to continue to achieve optimal prices on an increasingly complex market.
The Periotheus Suite has been a permanent component of VERBUND Trading GmbH’s system environment for several years and functions as a central data hub using the Schedule Management and Power Plant Management. The key factor in choosing the solution was ultimately that VisoTech’s Autotrader is one of the few solutions in productive use on the market. Another reason for awarding the project was that VisoTech’s solution can be integrated into the existing system.
Renewable energies are changing the intraday market
The constantly increasing amount of renewable energy means it is becoming more important for energy companies to react to the fluctuating supply of wind and solar energy. This situation requires flexible marketing from market participants, but also allows for shorter term acquisitions. Thanks to quick reaction times, intraday trading in the direct marketing of renewable energies has in the meantime assumed a key role. Therefore, power plant operators can react at short notice if, for example, a weather forecast changes and causes a non-scheduled over or underproduction from wind turbines.
“Our Autotrader helps VERBUND Trading GmbH to fully utilise the increased flexibility on the market. It enables the traders to react quickly to unplanned and unpredictable changes in power production or demand”, says Johannes Püller, Managing Director of VisoTech.
Power trading is becoming increasingly faster and more demanding due to the volatility of renewable energies. Today it is almost impossible to keep to risk limits efficiently, without the help of additional tools. The number of prices and positions to check causes the market to become increasingly unclear, whilst decisions need to be made quicker and quicker.
“The Autotrader reduces the market’s complexity for the traders by automatically taking several factors into account, such as restrictions and limits, and by trading on the market according to pre-defined strategies”, said Püller.
Autotraders are creating new opportunities for market participants
VisoTech’s Autotrader allows intraday power trading on EPEX SPOT to be fully automated. Therefore, power plant complexes and energy storage systems can be marketed optimally or open customer positions can be covered as efficiently as possible, according to specifications. Companies can also trade outside of their regular business hours with the help of automated trading solutions. A lot of unused potential can also be found in day trading which can be exploited by the Autotrader. It allows traders to achieve even better prices. One example is the large speed advantage – VisoTech’s solution can trade all positions simultaneously within a few milliseconds. The integrated limit management prevents transactions at extreme price settings or quantity fluctuations whilst taking the order to trade ratio (OTR) into account. Proactive notifications by e-mail or SMS keep the person responsible constantly up-to-date.
VERBUND is Austria‘s leading electricity company and one of the largest producers of hydroelectric power in Europe. More than ninety percent of its electricity is generated from hydroelectric power. VERBUND has a market share of around 7 percent in the small consumer segment, whilst the company is the leader in the industrial sector with roughly 20 percent. VERBUND trades in power in 12 countries and in 2014 achieved a yearly turnover of 2.8 bn Euros with around 3,000 employees. Including its daughter companies and partners, VERBUND is active in industries from electricity generation, through transport, to international trading and sales.
In 2015, with approximately 3,000 employees, VERBUND achieved an annual turnover of 3 billion Euro. VERBUND was founded in 1947 and has been listed on the Vienna Stock Exchange since 1988; 51 % of the company’s shares are owned by the Republic of Austria. By 2018, VERBUND plans to invest € 1.5 billion in wind farms, grids and efficiency improvement of existing hydroelectric power plants.
Bilder: © VERBUND