Energy Trading and Risk Management without Limits
Why a modern ETRM solution gives energy traders an immense advantage in meeting modern market challenges
The energy market landscape has changed over recent years. Price volatility, an increase in supply and demand of gas (and LNG), geopolitical changes and drives to reduce carbon emissions have all played their part. Disruptive events like the spread of the coronavirus shook markets across the globe, leaving many energy companies scrambling.
Chartis Research created the Energy25 report to highlight technology that helps energy companies address today’s market challenges. For example, LNG’s entrance into new markets has changed the way it is traded, moving from index-linked to oil prices to a commodity in its own right. The increase in popularity of renewable power also brings new levels of unpredictability, as power outputs are dependent on climate conditions. The volatility of supply presents particular challenges to traders.
A digital era requires a digital solution
At the same time, there is a global move towards digitalisation with modern technology and analytics to capitalize on big data. Data is more widely available than ever, from disparate and similar sources. Used correctly, it can help traders make better decisions, reduce risk and increase profits.
Modern Energy Trading and Risk Management (ETRM) solutions consume these data and turn them into valuable real-time and predictive information. They provide the speed and agility traders need to navigate changing market conditions and respond to unexpected events. They catch the smallest changes and immediately respond, relaying valuable strategic intelligence back to the user, reducing risk and increasing profits.
By harnessing the latest technologies, such as cloud, advanced analytics, blockchain, machine learning and AI, modern ETRM systems learn and get smarter over time.
Using a single platform, Eka leads the market with fully customizable, powerful, enterprise-grade apps that offer the flexibility and adaptability to meet new challenges head on as they arise. Open APIs give total versatility and enable new data streams to be added without the need for integration, providing the agility required to quickly react to volatile market conditions and the future needs of the industry. Many manual processes can be automated, producing huge improvements in efficiency and eliminating errors.
Where are the limits of modern ETRM?
Modern ETRM delivers quick implementations, improved returns on investment, and rapid, straightforward extensibility, enabling energy companies to keep pace with rapidly changing industry dynamics. Today’s ETRM must react and adapt to market changes with modular apps, the ultra-fast updates and easy introduction of new components, new functionality and new digital technologies. This agility provides significant future-proofing without the constraints of older technology stacks or legacy solutions. Indeed, the potential for the system is only limited by the imagination.
Digitalization offers immense advantages
Fast-paced market changes and access to huge volumes of data present challenges and opportunities to the energy market. Big data is here to stay and traders need to ‘adapt or die’ as the need for greater agility to respond to changing conditions increases. An extensible cloud platform helps businesses automate processes, gain better insight from data, and make better decisions for trading and risk, supply chain and financial management. The Eka cloud platform offers a way to navigate fast moving and uncertain markets with superior speed and agility and enables improved collaboration with trading partners.
Eka came #3 overall in the Chartis Energy 2019 Top 25 Vendor Evaluation. (#2 in strategy, #2 in core technology and #1 in innovation). You can read our press release about this report here.