An interesting article. However, it suffers from circular logic. Fact: renewable output has significant error bars when looking 24hrs ahead. Assertion: intraday markets are important for RES integration into the elec system. Fact: many (most?) renewable projects are being connected under CfDs – which insulates a given RES project under CfDs from market wobbles. Why then are intraday markets helpful? The problem is as follows: the elec system needs determinism to operate in a stable fashion (balance load and generation – from real time through to multi-day). Determinism has declined (fossil exiting/de-carb) and what is left can be costly. As I have repeatedly noted, no serious effort has been made to address the storage problem (where to put the surplus elec) and the obverse – what happens when no-wind and no sun. Demand response? The EU has been talking about it for north of a decade – little real action (generators don’t like it amongst other reasons). The article claims that markets can help balance – but that claim rests on pricing – the pricing of MWh to force balance. But if you have a CfD why would you be worried? As for the massive price oscillations – looks like bank prop-desks trying to make a killing – we know they are plays in this game – you only need to look at the 4:1 ration – elec trading vs delivery. This is not markets delivering sensible prices, this is a casino & the ones who ultimately pay are Euro serfs.
Are these electricity markets (forward, day ahead, and intraday) used exclusively by generators and consumers, or are financial players involved? Reading Seb Kennedy, I get the impression that financial players have a big impact on TTF prices.
traded electricity vs delivered electricity has a 4:1 ratio. Most generators and retailers have trading desks. Arguably, they have a legitimate need. However, many banks also have trading desks (prop-desks) they never take delivery of elec and account for most of the market churn. It is claimed that this helps market "liquidity" - however, the reality is that elec markets have been taken over by the finance parasites - to make money.
An interesting article. However, it suffers from circular logic. Fact: renewable output has significant error bars when looking 24hrs ahead. Assertion: intraday markets are important for RES integration into the elec system. Fact: many (most?) renewable projects are being connected under CfDs – which insulates a given RES project under CfDs from market wobbles. Why then are intraday markets helpful? The problem is as follows: the elec system needs determinism to operate in a stable fashion (balance load and generation – from real time through to multi-day). Determinism has declined (fossil exiting/de-carb) and what is left can be costly. As I have repeatedly noted, no serious effort has been made to address the storage problem (where to put the surplus elec) and the obverse – what happens when no-wind and no sun. Demand response? The EU has been talking about it for north of a decade – little real action (generators don’t like it amongst other reasons). The article claims that markets can help balance – but that claim rests on pricing – the pricing of MWh to force balance. But if you have a CfD why would you be worried? As for the massive price oscillations – looks like bank prop-desks trying to make a killing – we know they are plays in this game – you only need to look at the 4:1 ration – elec trading vs delivery. This is not markets delivering sensible prices, this is a casino & the ones who ultimately pay are Euro serfs.
Also volumes under CfDs are traded on day-ahead and intraday markets, in Germany e.g. by the TSOs.
Are these electricity markets (forward, day ahead, and intraday) used exclusively by generators and consumers, or are financial players involved? Reading Seb Kennedy, I get the impression that financial players have a big impact on TTF prices.
traded electricity vs delivered electricity has a 4:1 ratio. Most generators and retailers have trading desks. Arguably, they have a legitimate need. However, many banks also have trading desks (prop-desks) they never take delivery of elec and account for most of the market churn. It is claimed that this helps market "liquidity" - however, the reality is that elec markets have been taken over by the finance parasites - to make money.