MFT Energy trades power and gas on energy exchanges and facilitates efficient markets. In our case, that means moving energy from A to B to balance supply and demand. But how does it work exactly? We have invited Bo Palmgren, COO & Partner for a chat.
What does MFT Energy do?
At MFT Energy, we are experts in trading power and natural gas on energy exchanges. We match the interests of market supply and demand and contribute actively to price determination and price security. Matching the interest of market supply and demand also relates to timing and place of delivery. In essence, we move energy from A to B between markets and countries and contribute to optimal resource allocation.
The energy market is well organized, and trades are done via specific energy exchange much similar to the financial stock market. Our specialized trading teams couple in-depth market knowledge and comprehensive data analysis to trade energy within Intraday, Day-Ahead and Forward Trading.
Why is it Important to Facilitate Efficient Energy Markets?
To answer this question, let me elaborate on what happens if we have no efficiency in energy markets. In such a case, the entire value chain from the producer to the consumer is hit by price and cost uncertainty. Consumers prefer knowing their fixed expenditure for power and heat, and efficient energy markets help bring price certainty.
How is MFT Energy Contributing to the Green Transformation?
The European Commission’s 2030 Climate Target Plan proposes to cut greenhouse gas emissions by at least 55% by 2030 and to further become climate neutral in 2050 ( source: 2030-klimaplanen (europa.eu))
Renewable energy (renewables) is generated from wind, solar or hydro and whenever a country has a surplus of renewable energy production, MFT Energy helps transport this surplus to other countries allowing them to replace traditional “black” energy sources with renewables. In essence, MFT Energy helps bring renewable energy to the markets and contributes to the green transformation towards the 2030 targets.
How does MFT Energy Work with Volatility?
Since technology has yet to invent storage of power, volatility remains a natural element of the energy markets. As an example, volatility occurs when heavy wind increases the production from wind turbines, or when the sun increases power production from solar power cells. In both cases, we are left with a surplus of energy that cannot be stored but is instead transported to other countries to balance supply and demand.
A volatile market benefits from having many operators, such as MFT Energy, who can help with price determination and price security. We like to say that we bring certainty to a volatile market.
MFT Energy has several international offices and trades across many borders. Our partner model enables talented people to become engaged business owners and creates a dynamic, enjoyable, and profitable work environment for everybody.