Taking advantage of market opportunities is a tricky business, especially when it comes to energy trading. Market participants are all facing various challenges, each trying to optimize their portfolio, minimize risks and achieve operational excellence.
Limiting exposure to market fluctuations and mitigating risks is an all-encompassing effort in volatile energy markets. It involves proper portfolio management, monitoring performance, ensuring optimized maintenance of energy systems and controls, all in real-time. The volume and variety of structured and unstructured data processed also plays a critical role. With so many elements to take into consideration when making a trade, effective data management and analytics are of extreme importance.
Exploring opportunities and risks in energy trading
Effective management of up to the minute data and streaming analytics allows proactive monitoring, and imminent decision support based on market data. As a catalyst for digital transformation, Scalefocus offers various data services that respond to the unique needs of businesses in the energy and utilities sector including powerful streaming analytics tools. Let’s focus on how streaming analytics, together with the use of real-time data, are able to explore opportunities and lower the risks in energy trading and can lead to better business results.
The main benefits of real-time streaming analytics include the ability to:
Analyze data at the speed of its creation ensuring that your trading decisions are well-informed and made on the most current data.
Receive continuous insights that allow complex pattern recognition and detection of hidden market opportunities, improving your portfolio performance.
Enable and support effective market surveillance by detection of fraudulent behaviours to ensure regulatory compliance.
Use streaming data sets for ML model optimization to enhance cost control and scenario testing.
Examples of streaming analytics in action
High-frequency trading is gaining ground in energy markets. Timing is crucial - getting real-time quotes enables traders to work alongside predictive models that anticipate price movements. Data streaming is a substantial element for successful algo trading.
Traders and market analysts can pull out various valuable trends, hidden patterns or arbitrage opportunities from the stream, making most of trading timeframes.
Streaming analytics can contribute towards modelling risks, internal and external trading behaviors effectively and assess risk returns better.
Tackling challenges head-on
It is a fact, that to be successful in energy trading, a company requires highly analytical modelling capabilities to stand out in the global commodity market. The ability to process and assess market data effectively is related to managing information quickly in order to seize and act on the opportunities presented with limited risk.
For one of our clients, the challenge remained of retrieving and using their data effectively and efficiently. Their data had been stored in various places that were managed by different teams, each applying their own processes. This was leading to a lack of traceability, significant data duplication and there was no unified approach to maintaining quality, thus lowering it significantly.
Tackling the challenge head-on, Scalefocus designed and implemented a data lake on Azure, that now serves as a single location for storing and sharing their data with confidence. In turn, our client has reported improvement in quality and data lineage that is easily trackable through the centralized system. Apart from decreasing report generation time by 27% and lowering data query timelines from several hours to minutes, all incoming data was enriched with metadata using Databrick notebook.
It’s time to assess your objectives
Our clients have two options, when choosing to partner with Scalefocus to leverage data analytics successfully. We offer complete implementation of powerful data analytics tools like Microsoft Power BI, or Azure Databricks that provide fast processing speed, data visualization, dashboard sharing and many other features.
As an alternative, we can create a fully customized cloud-native modelling platform, giving greater flexibility and access control management, tailoring it to your unique needs. Still not on cloud? Don’t worry, we’ll be your trusted partner throughout your entire migration journey. It’s all about establishing your goals and with our help, selecting the right path to reach them.
Our holistic approach
We consider our clients as our spokespeople for our success and areas for improvement. Their stories fuel our desire to grow as technology experts and expand our industry knowledge. The challenges they face on a daily basis motivate us to work harder, explore new ways of thinking, and apply innovative strategies that address the problem at every angle.
The flow of services we provide can be broken down into the following steps:
Client-centered consulting. Our business analysts identify key challenges and problems you are facing.
Robust architecture. Scalefocus software architects plan and design the best solution that satisfies all of your requirements.
Development and support. Our engineers apply industry best practices to create the tools needed to boost your business value and offer round-the-clock assistance upon completion.
Automation. We ensure that all of your business processes are running smoothly and efficiently in a CI/CD environment.
Take control of your data
Want to be the boss of your data and boost results in energy trading? Start by reaching out to our Energy and Utilities team. Together, we can bring your utility company greater business value, ensure maximum optimization of resources, high quality and safety measures that meet regulations and create a sustainable plan for the future.