Industry challenges

The global energy wholesale markets face multiple complex challenges:

  • Increasing renewables create downward pressure on wholesale electricity prices due to non-existing marginal costs but also increase market volatility due to their intermittent nature
  • Changing load curves, e.g. duck curves, resulting from increased share of renewable put premium on (flexible) capacity
  • The stronger future dependency on weather increases the relevance of intra-day markets, balancing needs, and weather derivatives
  • Apart from temporary fly-ups, commodity prices continue to stay low due to efficiency gains in shale production and significant drops in oil prices
  • Globalizing natural gas markets with new investments into LNG import and export infrastructure lead to global long-term price harmonization
Expert understanding of international wholesale energy markets

Our expert understanding of international wholesale energy markets enables us to future proof your firm highlighting new trajectories for value creation in a segment characterized by continuing and sustained price declines.

Our Expertise

SDI employs a clear, forward-looking approach to problem-solving to arrive at innovative solutions for wholesale energy trading and marketing clients. We help our clients succeed in these challenging market conditions.

Through long-standing project experience, SDI has built a winning know-how in wholesale energy trading:

  • Our project success builds on the deep and informed understanding of wholesale markets following our decade-long experience in the sector comprising front-, mid- and back-office cost comparisons, process improvements, ETRM implementation support
  • Our international and cross-industry experience allows us to integrate global, regional, and adjacent industry (e.g. financial trading) lessons learned and deliver the best value to our wholesale energy clients
  • We have successfully designed and implemented commercial wholesale trading strategies comprising regional, international, and product entry and expansion strategies that excelled at creating significant business value

Project References

Our Expertise - Energy Wholesale

SDI Capabilities Strategy design and implementation

Strategy Design & Implementation, Digital Strategies

Ensuring successful UK energy trading market entry for a top utility

Achieving operational excellence through assessment of international wholesale power market trends

U.S. wholesale gas market trends assessment

Winning IT strategy design for leading wholesale energy trading firm

SDI Capabilities cost reduction and process strategy

Cost Reduction, Process & IT Systems Optimization

Operational baselining and cost standards development across energy trading organization

Detailed process mapping of an energy trading firm for successful ETRM implementation

SDI Capabilities M&A and Post-merger Integration

M&A Screening, M&A Execution and Post-Merger Integration

Ensuring successful UK energy trading market entry for a top utility

Targeting and identification of a wholesale gas trading firm for an acquisition

Commercial due diligence support for a trading firm acquisition

SDI Capabilities Consumer Analytics, Marketing and Sales Excellence

Customer Analytics, Marketing & Sales Excellence

Ensuring successful UK energy trading market entry for a top utility

US power trading customer analytics for regional expansion

US gas trading customer analytics for regional expansion

Selected Publications

Our Expertise - Energy Wholesale

March 2017

Wholesale Energy Trends

SDI conducts annual trend studies that shape the 'Energy & Utilities – Wholesale' industry. Please request your copy via link below.

August 2015

[German] Stromhandelstrends

Veränderungen bei Energieangebot und -nachfrage beeinflussen die Stromhandelsmärkte direkt und langfristig

July 2015

Wholesale Energy Trends

The changes in the energy supply and usage directly affect the wholesale power and gas markets on multiple levels