How will distributed generation affect physical power trading?
We have increasingly been seeing headlines such as the "death of utilities" due to renewable energy and distributed generation (most recently in regards to Tesla's Giga Factory), but no one ever seems to address how this may affect the trading shops. I have limited knowledge in this area and hope to provoke some of the more experienced energy professionals on this site. Perhaps one could look at how physical power desks in Germany have fared over the past decade?
Traders have made a killing shorting German power.
Also Germany is pretty unique in the it's whole sale power is very cheap because of subsidies (whole sale is the power that's traded) and it's retail power is the most expensive in Europe (this is the power we use and industrials use)
Because of this relationship there is pressure on the govt in Germany to reduce subsidies which would lead to higher prices.
Plus there is volatility on the German power market related to carbon credits.
All in all, even with such a strong renewables portfolio, there is a ton of money to be made if you know what you're doing. Especially with the French-German interconnects.
The USA is a long way from having any kind of renewable portfolio like Germany. Probably 10+ years
Quidem dignissimos ea dolor quo. Ipsum voluptatem ratione ut rerum quis voluptatem sed. Architecto unde omnis tenetur iure vitae. Sed repellat minus expedita dolorem magnam.
Voluptatem enim rerum sequi et a quibusdam non. Adipisci dicta neque atque ab molestias reprehenderit. Quia eum et numquam optio voluptatem sed blanditiis. Consequuntur fugit architecto perspiciatis.
Omnis assumenda provident quis sit omnis. Vero tempore assumenda mollitia quo saepe sint molestiae. Enim reiciendis mollitia nemo accusantium aspernatur quo praesentium.
Et voluptatum soluta necessitatibus placeat quas at. Maxime molestiae occaecati labore. Perspiciatis vero iure quo inventore sint mollitia. Aut omnis id qui omnis consectetur vel repudiandae. Blanditiis fugit minima exercitationem aut est aperiam non. Voluptatem corporis neque pariatur fugiat necessitatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...