Electricity and Gas Trading
What does Physical Electricity trading entail? What goes into a "physical" electricity trade? What firms are trading electricity and the grids, such as ERCOT and West Coast. Also, what goes into a Natural Gas trade? How is Natural Gas transported mainly, is it through pipelines or another way? Also, what firms are big Natty Gas trading? I believe Vitol is, but outside of that, I'm not too sure who is big in the space. Sorry if these questions are very basic, I just really don't know much about this realm of commodities trading / physical commodities trading.
Sorry mate don't have answer but it's so telling of our world when good posts like these go unanswered while racist troll posts get a ton of engagement.
which post are you referring to?
won't say because I've already hijacked enough of this thread
I'm also curious.
FYI this is mostly large physical players after a 2 min brainstorm while I wait for the train.
Power:
MS
Shell
EDF
DE energy
Aspire
vitol
Eversource
Lots of small players trading short term
Freepoint
Gas:
BP
Shell
Macquarie
Castleton
Citadel
GS
EDF
Uniper
Direct/ nrg
Trafi
Mercuria
Freepoint
Hartree
DE Shaw
Yes gas is moved and traded through pipelines or storage hubs.
de shaw does physical?
I worked at a group owned by DE for some time. We traded physical power, a few guys gas.
Physical power is moved through transmission lines. When trading physical power, you buy a specified amount of energy for a specified amount of time from a source and sell it to a different source for a better price. You usually buy rights to the transmission lines to move said power to the other end. Of course the trading part is still a simulated environment and you’re not moving literal electrons across the map.
RT guys literally move the electron from place to place. Only thing would be simulated is a mechanism like an ISO where depends if its a capacity market or so on.
Even in RT it’s just a paper trail. You can’t control physics.
Truly very basic questions and answered many times. This like saying what is banking, what firms do M&A.
I agree the firms question i could've looked up, but i've never seen anyone on WSO talk about what goes into a physical power trade
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