AleaSoft Energy Forecasting, March 1, 2024. In the energy sector, the importance of up‑to‑date and reliable data is highlighted in the face of challenges such as renewable energy growth and price volatility. Traders, renewable asset managers and large consumers depend on accurate information for strategy, risk mitigation and operational efficiency. Data is at the heart of the European Union’s strategy for digitalization, renewable energy and Artificial Intelligence.
In the dynamic and challenging current scene of the global energy sector, the need for up‑to‑date and reliable data has become more crucial than ever. Companies in this sector face a constantly changing outlook, marked by the growth of renewable energy, fluctuations in energy market prices and the impact of climate change on reservoir levels and cooling demand, among many other aspects. In this context, informed decision making has become imperative for the survival and success of companies in the energy sector.
Energy trading: the insatiable need for data
The first thing that comes to mind when thinking about data and energy markets is trading. Energy market traders depend on accurate information to assess market evolution and patterns and to identify trend changes and new emerging patterns.
To remain competitive, it is essential to adjust business strategies based on reliable and up‑to‑date data. Energy traders seek to mitigate the risks associated with the volatility and evolution of energy prices by looking for the best hedging opportunities in the futures markets.
Alea Energy DataBase showing wind energy production in Mainland Spain along with the daily market price to show the impact of renewable energy production on market prices.
Data in the operation of renewable energy assets
Operational efficiency and asset management are essential in the energy industry, and renewable energy assets are no exception. Analysts need up‑to‑date data to optimize production, maximize revenues, minimize losses and ensure a constant supply, adapting to changes in market conditions and the generation mix.
The possibility to receive automatic alerts when a certain variable exceeds or falls below a certain threshold is an excellent tool for automatically detecting changes in market trends or attractive hedging opportunities, for example.
Data for large consumers
On the demand side, the availability of data is also very important, for example, for the optimal implementation of a diversified strategy for the purchase of energy. For this, there are long‑term options, such as self‑consumption and self‑supply or PPA, mid‑term options, such as hedging in the futures markets, and buying part of the energy in the spot markets, which are more volatile but offer very interesting opportunities, cannot be ruled out either.
For the energy purchase strategy to be robust, it must be supported by reliable and up‑to‑date data that provides a clear vision of the markets.
Digitalization of the energy sector
In the context of the digitalization and renewable energy strategy driven by the European Union, data plays a key role in the energy sector, where digital transformation is essential to achieve efficiency, sustainability and security. The intelligent collection, analysis and application of data enable more effective management of the energy supply chain, from generation to distribution. The implementation of advanced technologies, such as Artificial Intelligence (AI), leverages the wealth of data to optimize energy production, improve grid planning and encourage the adoption of renewable sources. Digitalization in the energy sector not only drives operational efficiency, but also facilitates the transition to a more sustainable system and responds to the changing challenges of the global energy landscape. In this context, data becomes the fundamental pillar for making informed and strategic decisions that contribute to sustainable development and the achievement of the climate targets set by the European Union.
Everybody needs data
Beyond the actors most directly involved in the energy markets, there are many other profiles for which up‑to‑date and reliable data is essential for the performance of their functions, from journalists and communicators, to CEOs and CFOs, through consultants and policy advisors for the optimal design of energy policies.
In a constantly evolving energy sector, the availability of always up‑to‑date data, centralized on a single platform, always available and in a common format is not just an asset, but an imperative need for companies in the sector. Those that prioritize the acquisition, analysis and effective application of data will be better positioned to thrive in an increasingly challenging and competitive environment.
Alea Energy DataBase
AleaSoft Energy Forecasting offers Alea Energy DataBase, an online data platform for the compilation, visualization and analysis of data related to energy markets. Data is compiled on a continuous basis, which ensures that is up to date and allows all data to be available on the same platform in the same format.
The platform also allows data analysis, from defining the temporal aggregation of the data and the aggregation function (sum or average), the calculation of moving averages, or the comparison of the last weeks or months. The service also allows the creation of alerts when any of the data series or their moving averages exceed or fall below a certain threshold.
Source: AleaSoft Energy Forecasting.
