Umeå Energi Leverages Market Fluctuations With Volue’s Algo-Trader
Umeå Energi is an energy company based in the town of Umeå in northeast Sweden. It is responsible for the supply of electricity, along with providing district cooling and district heating.
Sustainability and technological innovation are built into the fabric of the company.
In 1892, Umeå Energi’s 36 arc lights became the first electric lighting in Umeå.
A few years later, the company installed its first hydroelectric power unit on the Umeå River. Ever since, Umeå Energi has looked for new ways to generate energy from renewable sources.
Today, 100% of the electricity produced by Umeå Energi comes from the sun, wind, the watercourses and biofuels of the region.
Just outside the city of Umeå, two ultra-efficient combined heat and power plants convert waste and biofuel into energy and are responsible for one of the world’s most energy-efficient and environmental waste-fuelled central heating system – more than 70% of the indoor area in Umeå is heated by central heating.
Umeå has one of Sweden's most reliable electricity grids, too, with far fewer and shorter interruptions in power supply than the national average.
With their impressive sustainability and technological innovation record in mind, we could almost guess what brought the company to algo-trading.
We talked to Urban Lundström, Portfolio Manager at Umeå Energi.
“This was the first time we used an algo-trading service. I have been curious about algo-trading ever since I first read about it. This was the first opportunity to actually test this kind of solution. It felt exciting and interesting to test algo-trading. Why? For example, to help make power trading more cost-effective through smart digital solutions.
We took part in Volue’s pilot case for the Intraday Access service and had a great experience. The test has shown very good results. It has shown that we have been able to save money.
But the AI in the algo-trader doesn’t help only us. It’s an activity that, among many, benefits our customers.
Digital solutions are important and a bit of a revolution in many ways. When it comes to timing in a market that moves fast, algo-trading is extremely suitable.
For us, the main benefit of using the algo-trading service is that we have a service that works all trading hours, and gives us the opportunity to leverage market fluctuations to keep our costs down.
Since we were new to the service, we needed an introduction. That was smooth and professional. It was helpful that we had quick, frequent follow-up meetings that gave us a good idea of how things were going. This made us feel safe. The result also looked really good.
We are very happy with the pilot and have chosen to continue with the algo-trading service. It is an advantage that we are not stuck in a long commitment contract. If things were to change, we have the flexibility to discontinue the service.
At the end of the day, our goal is to make everyday life simpler for our customers and to secure a sustainable future for the local region. We are always on the lookout for the right tools and services to achieve this.”