Intraday Trading
Discover intraday trading—the path to maximum flexibility in the energy market. The key to maximizing profits during periods of high volatility through responsive, real-time trading of electricity on spot markets and in the OTC sector.
What is Intraday Trading?
The volatile electricity market provides price incentives for demand-responsive power generation. Intraday trading refers to a form of short-term electricity trading in which transactions take place over very short time frames (up to 5 minutes in advance). By purchasing electricity at low prices and selling it at high prices, market participants can benefit from the growing market dynamics. A smart algorithm manages these processes in the energy market. An energy storage system thus provides the necessary flexibility to enable the integration of volatile renewable energy sources. Given the steady expansion of volatile energy sources and the ongoing liberalization of the electricity market, rising market volumes and increasing price volatility in the intraday market can be expected.
In addition to intraday trading, there are other forms of flexibility trading. These include trading on the day-ahead market, which precedes the intraday market. Prices are set the day before. Price fluctuations are generally lower here, but the storage system’s operating times are usually predictable. Other options for marketing flexibility include participation in balancing power markets. Battery storage systems are particularly well-suited for providing primary balancing power; however, the balancing power must be certified for this purpose.
Why Intraday Trading Is Worth It
Higher revenues through targeted trading in the intraday market
Charge cheaply, sell back at a high price: Take advantage of price differences throughout the day
Storage systems compensate for fluctuations in the power grid
Unused storage capacity is turned into revenue
For which companies does intraday trading make sense
When combined with an energy storage system, intraday trading can, in principle, be suitable for all companies. The rule of thumb is: the more capacity or flexibility available for trading electricity, the higher the profit. Furthermore, if a company can flexibly shift its own loads, this further increases potential trading volumes and, in turn, profit potential. The potential is particularly high for companies with their own generation facilities. The surplus electricity can then be sold during periods of high electricity prices. Whether integration into a company’s existing energy management system can be profitable ultimately depends on the specific energy portfolio and the ability to make capacity available for electricity arbitrage.
Intraday Trading FAQs
Intraday trading is the short-term trading of electricity on the exchange. When a battery storage system is integrated into this process, it stores electricity when prices are low and feeds it into the grid when prices are high. The aim is to profit from the price differences within a day and thus generate additional income.
In addition to the battery storage system, a control unit is required to connect the storage system to the electricity market. This control unit analyzes the price data in real time and automatically decides when to charge or discharge in order to maximize profits. A connection to the electricity market trading platform is also necessary and is provided by Voltfang.
The return depends on factors such as the storage capacity of the battery system, price fluctuations on the electricity market and operating strategies. There are no guaranteed returns, as prices on the market are volatile.
The frequent charging and discharging that is necessary for intraday trading leads to a higher cycle load on the battery. However, Voltfang is the only competitor on the market to offer a 10-year guarantee for battery storage with an unlimited number of charging cycles.
To get started, you should first have a detailed profitability analysis carried out by Voltfang and/or alternative providers of battery storage solutions. An initial estimate of the potential profit can help to justify the investment.
Practical case studies: Voltfang in action
Discover in our practical case studies how companies from industry, retail, and logistics are successfully using Voltfang battery storage systems. Learn more – from detailed load profile analyses and impressive cost savings to the innovative technologies behind them.
Our use cases for increasing energy efficiency
Every company has unique power supply needs. Depending on the circumstances, one or more use cases for commercial energy storage systems may apply. Our team of experts can help you identify the right use cases and tailor them to your specific datato ensure optimal energy efficiency.