Bankers Reaping the Rewards of German Green Energy Instability

Watts Up With That?

Germany-solar-wind-graph

Guest essay by Eric Worrall

Bloomberg reports that energy traders are increasingly using computers, to try to keep up with wild price changes in the volatile German energy market.

Looking for Volatility? Try Germany’s Shift to Renewable Energy

Germany’s shift to renewable energy has created a power market so volatile that humans are having trouble keeping up with it.

Four-year-old Grundgruen Energie GmbH, whose glass-walled office is just off Berlin’s most fashionable shopping street, uses a coping technique more likely found in markets for stocks, bonds and currencies: It lets a computer program do the hard stuff. About nine other trading firms are doing the same in the German market, most starting just last year, according to an estimate by the

The price movements in the nine-year-old intraday German power market are “about 200 times that of financial markets,” said Karl Frauendorfer, a professor of operations research at University of…

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