How are digitalization and new technologies transforming energy trading? Analytics, recommendations.
The energy market is undergoing a significant transformation due to the introduction Innovations in energy of digital technologies. The electricity and gas trading sector is no exception, as modern technological solutions are significantly changing approaches to management, analytics, and process optimization. How does this affect market participants, what opportunities does the new era of digitalization open up, and what risks does it hide?
Technologies that are changing energy trading
1. Big Data and real-time analytics
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Collecting and analyzing large amounts of data allows you to forecast supply and demand, optimize trading strategies. According to a Bloomberg NEF report, the use of Big Data algorithms reduces costs by 15-20%.
2. Automation of transactions (robotic trading)
Automation systems ensure speed and accuracy of transactions, especially in short-term contracts. AI-based software solutions reduce transaction execution time to a few seconds.
3. Blockchain
The technology ensures transparency and security organizational structure as an element of management of transactions. In particular, in South Korea, blockchain is used to control the accounting of “green” certificates.
4. Smart Grids
They allow traders to instantly respond to changes in electricity supply by integrating renewable energy sources.
Legal aspects and challenges
Despite the benefits, new technologies also create risks:
Cybersecurity: Energy infrastructure is becoming a target for hackers. Data awb directory and transaction security is a top priority.
Changes in the legal field: New technologies require adaptation of legislation, which can be a lengthy process.
