Survey Shows Online Power Trading Growing
NEW YORK - -- Electricity trading continued to move online in the past six months, but most wholesale power deals are still being done through traditional voice brokerages, the latest Energy Argus survey has found. Internet-based trading now makes up 38% of trading in the US, up from 28.5% in February and 25% in April 2000, according to Argus data.
Most online trading is done through either IntercontinentalExchange or EnronOnline, each of which have more than a third of the electronic market, the survey of 40 power traders found. However, another 24% of the transactions are completed through a variety of other platforms, including DynegyDirect, Bloomberg Powermatch and TradeSpark.
Although their market share has declined from 75% two years ago, traditional brokers continue to process most power trades, due to their ability to offer options and other derivatives, their dominance in the short- term physical markets and some trading houses' reluctance to embrace online technology.
For a full copy of the Energy Argus Survey, please send your request to mailto:info@energyargus.com.
Energy Argus Inc., the youngest company in the Argus group, is dedicated to creating a knowledge and analysis resource for the power industry in the US and Europe. Energy Argus covers news and prices as well as focusing on reporting on all developments that might have a medium- or long-term impact on power markets. The guiding principle in our coverage is to ensure market and industry relevance. "Cutting through the noise" means rigorous culling of hype and fluff and a sharp focus on market-moving developments, whether it's short-term plant operations or long-term political maneuvers.
Related News
Minnesota 2050 carbon-free electricity plan gets first hearing
ST. PAUL - Gov. Tim Walz's plan for Minnesota to get 100 percent of its electricity from carbon-free sources by 2050 was criticized Tuesday at its first legislative hearing, with representatives from some of the state's smaller utilities saying they can't meet that goal.
Commerce Commissioner Steve Kelley told the House climate committee that the Democratic governor's plan is ambitious. But he said the state's generating system is "aging and at a critical juncture," with plants that produce 70 percent of the state's electricity coming up for potential retirement over the next two decades. He said it will ensure that utilities…
