Posters
Come meet the poster presenters to ask them questions and discuss their work
We would like to invite you to come and see the posters at our upcoming conference. The posters will showcase a diverse range of research topics, and will give delegates an opportunity to engage with the authors and learn more about their work. Whether you are a seasoned researcher or simply curious about the latest developments in your field, we believe that the posters will offer something of interest to everyone. So please join us at the conference and take advantage of this opportunity to learn and engage with your peers in industry and the academic community.
PO376: Three ways in which increased volatility and flexibility are reshaping Spain’s energy market
Alexis Stavropoulos, Director, Baringa
Abstract
Our abstract seeks to answer the question: how are different players in the Spanish energy market adapting to the new era of increased volatility? Having collaborated across several engagements with some of the most relevant player Spanish energy market, ranging from asset owners, developers, trading companies, lenders and software developers, we can summarise the three key topics: 1. Amid curtailment, negative prices and the recent blackout, volatility is challenging asset owners to transform the way they operate, but it is also unlocking lucrative opportunities for those best able to adapt and respond. 2. Power generation is no longer a volume game. Market participants need to actively manage their assets to increase the margin they capture – either through greater scrutiny of market agents, or by strengthening in-house trading capabilities. 3. BESS unlocks opportunities for flexibility, new revenue streams and portfolio risk diversification but also adds complexity and new portfolio management requirements. Most companies that are and want to remain relevant in the Spanish market will pursue closer market proximity, but it is a novel task and there is no one-size-fits-all path. Instead, each company’s goals, risk appetite and target business model will shape its investment in capabilities. With an increasing pressure on wholesale market across daily hours, diversified portfolios (such as those with Wind or Hydro exposure) sit on better position to capture the opportunity. The journey will inevitably involve careful decision making regarding the economies of scale needed to make internal trading desks viable, managing impacts to the cost of capital, and skilful investment in technology and capability development. But making these investments in the target operating model for their organisations could enable asset owners to thrive for years to come.
No recording available for this poster.
