Renewable electricity is cheap and clean, but is also easier to predict than a launch gas turbine. It turns out that this is both a problem and an opportunity.
Most solutions to the intermittent problem involve pairing solar panels and wind turbines with batteries that will store the power supply used for use when the sun sets or wind dies. The battery acts as a hedge to these natural interruptions.
However, expensive physical assets are not the only way to hedge risks. The market is another. A startup company, electronican exchange is being established, in which the buyer and seller can trade electricity. The company said the goal is to help both parties manage risk and hedge volatility, thus ejecting some financial uncertainty from the outbreak. Renewable energy.
To achieve this, Electronx raised $10 million in a subsequent round led by Systemiq Capital and was involved from Equinor Ventures, Shell Ventures and Innovation Endeaevors. The new investment comes after $15 million in seeds raised in June 2024.
In most cases, the U.S. electricity market is highly regulated, establishing assumptions formed when power plants are produced in large quantities. They ran around day after day to form a stable foundation, with more expensive power plants responding to fluctuations in demand.
But as solar and wind enter the market, they turn some of these assumptions to the mind. Unlike large fossil fuel power plants, renewable energy can be quickly turned on and closed. Batteries increase costs, but offer greater speed and flexibility in responding to demand transfers.
Electronx believes that these qualities open the door to new trading capabilities.
The company’s proposed exchange will allow electricity suppliers and consumers to buy and sell capacity on a 1 MW block per hour or in a block of 1 MW per hour. The company said Electronx is still awaiting approval from the Commodity Futures Trading Commission, but if that happens, the company’s finer blocks could reduce the “million-dollar trading demand” that exists in today’s electricity market.
The goal is to allow Smaller companies Playing a bigger role in the power market is similar to how retailers participate in the stock market. “By leveraging more precise financial products, renewable assets should see better returns and faster returns,” the company said in a statement.
