Energy Trading at ESB
ESB Trading works on behalf of the company to maximise the value output of our generation fleet over a two year horizon. We manage the margin associated with ESB’s portfolio.
Our team trades 24 hours a day, across multiple commodities in several key markets. Those markets all have unique characteristics, which, in turn, mean handling different currencies and regulatory regimes. As a result, the ESB Trading team is constantly dealing with high levels of risk in a very fast paced environment.
Managing these risks and seeking out the opportunities is crucial in deciding how and when to lock in the maximum value or reduced risk for ESB and its stakeholders.
Looking to the Future
The ESB Trading team is preparing for a new market in Ireland and increased trading activity in Great Britain (GB).
For example, Carrington Power Station (an 880MW combined cycle gas turbine plan near Manchester, England) will begin commissioning this year – it’s the only new plant currently being constructed in the Great Britain market. When it becomes commercially available in 2016, it will increase our tradable capacity by over 200%.
Meanwhile, the Single Electricity Market (SEM) in Ireland is currently being reformed, as we prepare for the implementation of the 2017 Integrated Single Electricity Market (ISEM). This move means that we will convert from a market where power stations are dispatched by the grid operator to one of self-dispatch. This new system will bring us into line with other European markets and reduce the barriers to trade across the continent.
These sorts of challenges are why Ken McKervey, ESB Trading Manager, says that, “Through teamwork and co-operation with other parts of the business, trading has an enormous part to play in the success of ESB in the future. We’re ready for the challenge."
EU Regulation 1227/2011 on Wholesale Energy Market Integrity and Transparency (REMIT) has directed generators to make information publicly available on the current status and availability of their generation assets.
You can find further information about ESB’s generation plant scheduled outages for SEM and BETA Markets on the ESB REMIT notification site here.
You can find unplanned outages and urgent market messages for SEM and BETA Markets on the ESB REMIT notification site here.