Electricity Industry: Renewable Energy

Revisiting electricity markets: trading 18. 10. 2022

Content: How do we sell and buy electricity?

Study materials: If a newcomer to the field, learn the basics of what is electricity and what it takes to supply it.  Next, let's assume the role of electricity producer. How can you sell your product? Simple! Either at the exchange or directly - bilaterally - to someone interested in buying electricity that way. Explore what these options are about in the videos by Laurens de Vries on electricity exchanges, One Minute Economics' brief introduction to bilateral (over-the-counter, OTC) trading, and then check a more detailed look at power purchase agreements, one of the most common ways to trade electricity bilaterally.

Get ready: Think about risk. What can go wrong for you as electricity producer and seller when trading at the exchange? And what when trading OTC? Which of these risks can be mitigated? How?