Trading opportunities for Front-of-the-Meter (FTM) assets can be divided into two categories: those that unlock the intrinsic value of assets and those that monetise their flexibility.
The intrinsic value of an FTM asset, such as a gas-fired peaking generator, is the difference between the market price of the energy generated by an asset (for example, in the day-ahead market) and the marginal cost of that asset. The profit is made when an asset is switched on, and the energy is sold at a previously agreed price.
Another way to generate profit from FTM assets is through the monetisation of their flexibility. The increasing integration of renewable energy from volatile sources into the grid makes it difficult to predict the exact levels of supply. As weather forecasts change, the amount of solar or wind energy incorporated into the system might be different than predicted.
“We often find that the fluctuating renewable generation affects the levels and timings of the peak supply, consequently impacting the prices in the wholesale markets”, commented Mark Davis, Managing Director UK & Ireland at GridBeyond. “Fluctuating prices create opportunities for FTM assets to optimise their operation against market changes by amending their previously planned regime and selling or buying energy at the best prices”.
A deep understanding of assets and experience controlling them in real-time enables GridBeyond to wait until the last possible minute, or even until the real-time of delivery, for the best opportunities for market participants to trade. The assets can then either be placed into the balancing mechanism or winded up or down against an accurate forecast of imbalance prices underpinned by Point, our AI platform, with robotic trading capabilities.
“Due to the complexity of the wholesale markets, the best financial outcome for FTM investors can be delivered only through the application of the most advanced technologies, such as robotic trading powered by AI and machine learning”, said Mark Davis.
“We have built-in data science into GridBeyond’s robotic trading platform. It enables trading in all markets and on every opportunity; delivers accurate forecasts of month-ahead, day-ahead and real-time pricing; and directs assets to the most lucrative markets, both by the time of day and month of the year”.
GridBeyond’s robotic trading services are risk-free, as we do not participate in speculative trading and only enter assets into the most profitable existing opportunities. If you have any questions on your site’s potential for energy trading, please contact our team, or to learn more about the additional services offered by GridBeyond’s intelligent energy platform, download the energy services brochure.