What is energy trading and why is it so important?

Businesses are seeing their energy costs fluctuate more than ever, as global events and market volatility push prices up and down unpredictably. This brings challenges, but also opportunities. How to get the most out of this? Energy trading. Energy trading plays a key role in this shift. By buying and selling electricity at the most financially advantageous times, smart companies can not only save costs drastically (by avoiding having to pay for returning energy), but even generate new revenue streams.

First things first: what is energy trading?

Energy trading is the active buying and selling of electricity on the energy market. Companies purchase electricity when prices are low (for example, during periods of overproduction from solar or wind power) and sell it again when prices rise. This is hugely important, as the global economy depends on this dynamic activity to guarantee effective distribution of energy resources at stable rates. 

The difference from traditional energy procurement is that you don’t just passively consume energy. Instead, you actively respond to market movements and get more value out of your installation. This requires not only a smart strategy, but also the right trader with the right technology, supported by artificial intelligence. It’s important to have the right tools and trader, in order to know exactly when it’s most profitable to buy or sell.

“According to a study of Research Nester, the global electricity trading market was valued at USD 82.3 billion in 2024 and is expected to grow at a compound annual growth rate of 7.8%.”

What factors influence energy trading?

Energy trading doesn’t happen in a vacuum. Several external factors directly impact price fluctuations and the opportunities they create:

• Generation capacity: the available infrastructure (from power plants and renewable installations to grid connectivity) determines how much electricity can be produced. Changes in capacity an/or periods of maintenance can quickly shift market supply.
• Demand fluctuations: electricity consumption varies daily and seasonally, influenced by industrial activity, weather conditions and market behaviour. These shifts must be constantly balanced to keep the grid stable, which creates trading opportunities.
• Regulatory policies: government regulations have a significant impact on the energy market. Policies around grid reliability, carbon pricing and renewable energy targets shape markets and consumer behaviour, influencing pricing and trading strategies.

How can businesses get started with energy trading?

Getting started with energy trading requires the right mix of collaboration, technology, flexibility, and insight. Installing energy storage, such as a battery, lets businesses buy electricity when prices are low and sell it later at higher rates. An intelligent energy management system (EMS), which acts as the brain of an entire energy system and combines a cloud-based layer and a local layer, connects different assets in one platform and monitors market prices in real time. It makes forecasting possible, which results in the best moments to buy, store or sell energy. 

How to make energy trading a success?

By combining AI-driven forecasting with real-time monitoring, the EMS can automatically respond to price fluctuations without manual intervention. Businesses gain a clear overview of their energy flows and performance through a central dashboard, while APIs enable seamless integration with other tools, such as BI systems or third-party trading platforms. This automation not only optimizes energy flows and reduces costs but also safeguards daily operations and provides the flexibility needed to adapt to changing market conditions.

Successful energy trading also depends on strategic optimisation. By analysing data on consumption, generation and market prices, companies can adjust and refine their trading strategy. Combining storage with flexible consumption adds further opportunities, allowing operations to shift to low-price periods, for example by running machinery or activating cooling systems when electricity is cheapest. These measures together maximise the financial and operational benefits of energy trading.

“In December 2024, an EEX press release reported a trading volume of 994.9 TWh on global electricity markets, representing an increase of 28% compared to the previous year.”

What are the benefits of energy trading?

For businesses, energy trading offers multiple advantages, both financial and strategic. Smart companies manage to benefit from the following:

• Lower energy costs: by using energy smartly, you can significantly reduce your average cost per kWh.
• Additional revenue: if you have energy stored in a battery, you can sell it when market prices are high.
• Better use of your own generation: instead of feeding your surplus into the grid, you can store and use it wisely.
• Support for the electricity grid: by actively participating in balancing markets, you contribute to a stable and reliable grid.
• Sustainable image: smart energy management shows that your business is taking responsibility in the energy transition.

Are you ready to use energy trading as an advantage?

Energy trading is much more than a way to lower your energy bill. It’s a strategic tool that allows your business to actively respond to energy market dynamics, generate new revenue streams and contribute to a more stable and sustainable electricity grid. Want to know how your organisation can maximise this opportunity? Get in touch with us to explore the possibilities.