Strong business strategies are powered by energy market knowledge

Big changes, bigger opportunities – if you know where to look

Today, market dynamics are influenced by more than just traditional price fluctuations. A mix of interconnected factors, including accelerated decarbonization, stricter regulations, and technological advancements such as energy storage and smart grid systems, is changing the way energy flows and decisions are made across the market.

Having a clear grasp of these trends provides businesses with a strategic advantage. But to fully harness this advantage, you need more than just local insights – you must understand the global context and the political and economic forces that drive the market. This knowledge helps businesses reduce risks from price volatility and seize new opportunities in a rapidly evolving landscape.

How does the energy market operate?

The electricity market is a complex system with multiple layers that work together to set prices and maintain the balance between supply and demand. One of the key components is the day-ahead market (DAM), where producers, suppliers, and traders make hourly price commitments for the next day.

In Romania, this market is operated by OPCOM and is integrated within the European market through a coupled pricing mechanism. This connection allows energy prices to be determined collectively across multiple countries, reflecting demand and supply trends on a continental scale.

A cornerstone of this market is the Euphemia algorithm, a European-wide system that optimizes both energy flows and prices. Aggregating data from interconnected markets ensures that countries with limited production capacity can access competitively priced energy through cross-border exchanges.

Short-term market mechanisms for adjustments

Besides the day-ahead market, energy markets also feature short-term mechanisms designed to ensure greater flexibility closer to the time of energy delivery.

The intraday market allows participants to make adjustments several hours before the actual delivery of energy. This mechanism helps correct initial forecasts and reduces the risk of costly imbalances by ensuring better alignment between predicted and real-time conditions.

The balancing market, managed in real-time by Romania’s grid operator Transelectrica, addresses deviations between forecasted and actual energy production or consumption. Because imbalances can result in significant costs, producers work to minimize them through accurate forecasting and the use of storage solutions.

Stay informed 

The energy market is constantly changing, and keeping up with these shifts can seem overwhelming. But you don’t need to invest countless hours in market analysis – Wiren takes care of that for you. We synthesize essential market information into a format that’s accessible, easy to understand, and designed to support your business decisions.

Every week, we provide an Energy Report with in-depth analyses covering the key developments in both national and European energy markets. This includes detailed insights into price trends, energy production by source, and the growing impact of renewable energy on supply and demand.

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