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Energy trading is transforming, including by integrating automated solutions using AI

3 March 2025
Electricity
energynomics

Traditional energy trading is undergoing a significant transformation with the integration of automated trading solutions, which also include artificial intelligence (AI) components, said Cristian Vețeanu, CESA Energy Leader for Strategy and Transactions, at the conference “Romanian Energy Market – Facts of 2025”.

“In the year we have been using such solutions, we have seen very good results. The reason why AI can predict better than a human trader is hard to explain. Most likely this is because AI does not think like a human,” Vețeanu said. “It equally analyses the horoscope, the weather forecast, the news in the tabloids, whatever it is given. It analyses and looks for correlations as opposed to the thinking of a trader, which was oriented only towards certain news, certain technical elements of adjustment, a certain mechanism of market functioning and gives these errors.”

 

 

He says artificial intelligence is proving particularly effective in volatile markets that no longer operate according to traditional rules. As the energy market evolves, he foresees the emergence of new types of traders who will utilise energy storage solutions, especially as intra-day markets integrate regionally.

“These traders will be able to trade cross-border and will have the ability to influence the price of energy through the way they use batteries. This type of trading has never existed before,” Vețeanu added.

In this context, Cristian Vețeanu detailed the main types of trading that have started to gain relevance on the energy market:

The first type is the trader operating behind generation assets. They manage the trading of wind farms, photovoltaics or generation mixes, with the main objective of optimising the generation profile in relation to market demand. “The generation asset trader has to balance his energy as efficiently as possible on the market to avoid high balancing market costs,” Vețeanu explained.

Another type of trader is one who operates from a consumer perspective. In recent years, large industrial consumers have started to set up their own trading teams, even obtaining supply licences to reduce the impact of regulation and market volatility. “Large companies in the metals, building materials or telecoms sectors have found that by managing their energy purchases directly, they can get more favourable terms than those offered by traditional suppliers,” Vețeanu said.

A third category is the spread trader, who works on the classic model of matching supply and demand, but who is undergoing a profound change due to automation and the use of artificial intelligence. “AI no longer only analyses fundamental and technical data, but also integrates information from unconventional sources, such as weather forecasts or even articles in the mainstream press, to detect correlations previously unidentified by human traders,” he explained.

An emerging model is the back-up trader of storage solutions. These traders rely on storage assets, such as batteries, to maximise profit through intra-day and cross-border trading. “Traders using batteries can influence market prices by when they choose to inject or withhold energy, bringing a new level of liquidity to the market,” Vețeanu said.

DOWNLOAD THE PRESENTATION OF CRISTIAN VEȚEANU

Finally, there is the traditional trader associated with suppliers, who optimises his buying and selling positions according to the supply and demand of his own portfolio. “This type of trading is still relevant, but it is evolving rapidly, influenced by new technologies and market transformation,” Vețeanu added.

With these new trading models, the energy market is becoming increasingly sophisticated and artificial intelligence is playing an increasingly important role in optimising trades and reducing the risks associated with volatility. “I can say that I wouldn’t like to be a trader today, but I think I would very much like to be a trader in the years to come,” concluded Cristian Vețeanu.

The conference “Romanian Energy Market – Facts of 2025” was organized by Energynomics with the support of our partners: Alive Capital, Elektra Renewable Support, Enevo Group, Hidroelectrica, Nano Energies. Software Media WEBUS 4 ENERGY, Think Blu Solution.

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