At MFT Energy, we trade power and gas across borders. Every day, our trading activities facilitate the distribution of power from renewable sources such as wind, solar, and hydro contributing to efficient pricing and an optimal use of renewable energy.
The production output from renewables like wind, solar, and hydro is inherently dependent on weather conditions. This makes power production from these sources unstable compared to more conventional production. Renewables are therefore driving and contributing to the market dynamics of supply and demand. It requires market participants like MFT Energy to facilitate the distribution of green power and contribute to efficient marketplaces.
Supply and Demand Movements
On windy days in Denmark, wind farms can produce more power than needed in Denmark, and the surplus production will cause power prices to fall.
On the same day, southern parts of Europe may be experiencing low temperatures and may need more power due to increase in demand for electrical heating. Because the renewable sources in Denmark produce more power than needed in the Danish market, MFT Energy can buy the power on the Nordic energy exchange and then sell it on an exchange to a buyer in southern Europe.
Acting as Facilitator
MFT Energy thereby acts as facilitator, connecting market players and supporting distribution of green power. The buyer may be producing at full capacity or can get an economic benefit from buying the power cheaper on the exchange.
MFT Energy executes thousands of trades every day across markets, interacting with parties trading on energy exchanges. Instead of switching off renewable resources like wind turbines in Denmark it is much more environmentally-friendly to trade green power across markets to where it may be needed. Further, cross-border trading will keep the markets in a supply/demand balance and contribute to efficient markets and better pricing for producers and consumers.
MFT Energy’s trading teams are all specialized within their respective geographical areas and fields and competence. They use in-depth market knowledge and comprehensive data sets to analyze the supply and demand for power and gas and turn this market analysis into business opportunities through the execution of their power trading strategies.
MFT Energy’s annual report 2021 can be found her