Flexible and Volatile Production – Norwegian Producer Gets the Best of Two Worlds With Modern Trading Software
TrønderEnergi has brought on board the international technology company Volue. The strategic partnership is aiming to develop the solutions of tomorrow for energy production and trading.
Today Nordic power companies buy and sell power once per hour. From 2023, the entire Nordic region will transition to 15-minute intervals. This means that production planning and trades must occur four times as quickly as before. Simultaneously, there are massive changes taking place in terms of power production at TrønderEnergi. They are doubling the production level from 3 TWh to 6 TWh as they introduce wind power parks to their portfolio. One of them is Fosen Vind, Europe's largest onshore wind power project in Central-Norway, comprising six wind farms with a combined capacity of 1,057 MW.
"We needed a tool that was more capable of handling intraday trades and data processing relating to this market. Based on that need we introduced the algorithmic trading solution AlgoTrader. It makes many decisions relating to the buying and selling of power, which before was done by our operators," says Ingebrigt Grut, Systems Engineer at TrønderEnergi. He adds:
"Our internal AI department has also contributed to the development of the underlying strategy used by AlgoTrader. Using several different teams in this process has been necessary," says Grut, who is also Project Manager for the strategic partnership with Volue.
Many of the largest power companies in Europe are using the Volue solution, Algo Trader. TrønderEnergi was the first firm to adopt it in Norway, and to date, a handful of other Norwegian companies have started using the algorithmic trading solution.
"We see a significant need for increased automation, both because trades relating to wind power are new to us and because it is by its nature less predictable than hydropower. TrønderEnergi believes that the total share of wind power in our price bracket and harmonisation with the European market will greatly impact the power market. This demands new tools and knowledge," says Grut.
The strategic partnership between Volue and TrønderEnergi will last for two years and Volue is investing NOK 100 million into further software innovation, enabling the energy market's green transition.
"The collaboration with TrønderEnergi provides a progressive sparring partner. Together we will develop technology and solutions automating and streamlining their working processes. In the time to come, power companies must be able to do more, work smarter and faster," says Camilla Thorrud Larsen, Head of Product Strategy at Volue.
She is not concealing that the knowledge Volue is building up through this strategic project may be of crucial importance to the company’s future growth in Europe.
"The transition to carbon-free energy production depends on a successful digitalisation of the entire green energy value chain. Volue will take an active role in helping customers accelerate the shift to renewable energy," says Larsen.
TrønderEnergi currently uses AlgoTrader for wind power trading only. The next step will be to introduce the solution for their hydropower trades, requiring a close dialogue with Volue.
"Through the use of innovative tools and increased knowledge, we hope to boost the value we can generate throughout the supply chain. At the same time, we have no plans to increase staffing, even if we will be handling twice as much power as we do at the moment. Efficient digital tools will release employee time to carry out more trades of better quality. We have automated routine work through Algo Trader," Ingebrigt Grut concludes.