Systems and technology are the enablers of efficiency and innovation. In energy trading, many sophisticated software vendors and service providers are driving business. They not only shape today’s energy trading from within, but will do the same through innovation in the future. We are delighted to present important views and insights from major vendors in the industry.

Traditional OTC trading has declined sharply since 2021. Amid the energy crisis, traders have accommodated onerous margin requirements set by exchanges. Now, OTC is back in focus – but in a different way: pre-trade transparency enables pricing of individual counterparty risk, while front-to-end digitization and automation address rising efficiency needs. Modern OTC trading offers complementary liquidity to exchanges and draws new players to fuel its growth.

Flexibility is the new gold of the intermittent power market. To some this is news. But many large and small customers already monetize the value of their flexible assets systematically, at scale, end-to-end, and across multiple markets and regions with the help of Volue’s data, software, and scalable automated processes. Relevant data flow and its management, portfolio optimization, and automated trading need to be thought and solved together.

Oversupply in GoO markets requires traders to focus on the unique characteristics of certificates to capitalize on niche opportunities or leverage Power Purchase Agreements (PPAs) to a bundled offering. To succeed, it is essential to break down certificates by individual characteristics and understand profitability drivers of PPAs and renewable assets, such as batteries. As a result, optimizing the combined portfolio and managing these value drivers is crucial.

Facing highly volatile and tightly regulated markets, energy companies must adopt flexible, cloud-native trading, and risk management solutions. These systems must be capable of handling high trading volumes, enabling real-time calculation of mark-to-market positions, managing physical and financial instruments across various commodities, and analyzing both historical and interval market data from diverse sources. Such capabilities are key to establishing robust risk controls and ensuring regulatory compliance.

The energy trading market is evolving rapidly. With growth in renewables and with alternative fuels increasing in importance, scaling businesses through advanced automation and technology is key. Success in short-term trading depends on handling high data volumes with performance. Technology is reshaping the market globally, fostering scalability and versatility, while creating immense opportunities for businesses to adapt, innovate, and lead in a dynamic energy landscape.

Rapid shifts in gas supply into and across Europe underscore the need for systems to accurately capture changes in market conditions and facilitate quick decision-making. Platforms need to capture and correctly value optionality rapidly, across the full range of physical gas assets, including swing contracts, storage, or transport capacities. Ever-expanding data requirements of short-term power markets and long-term power purchase agreements are further shaping today’s system landscape.

Since the energy market crisis, we’ve observed OTC markets rebound with recovering volumes and an influx of new entrants. From our perspective, traditional post-trade methods no longer meet market demands, as seen in the shift from electronic to PDF and email confirmations. To address these needs, we believe it’s crucial to rethink post-trading to lower entry barriers, boost working capital, and drive market participation, preparing traders for growth in emerging markets.

As the PPA market matures, we’re witnessing a shift from simple volume-based deals to intelligent, tailored solutions. The future lies in delivering green, firm profiles that combine multiple sources to meet the evolving needs of the market.