© Simply 3 Capital
© Simply 3 Capital
The global electricity trading market size is estimated to increase by USD 111.34 billion, accelerating at a CAGR of 6.56% between 2022 and 2027. Increasing collaborations among companies drive growth in the electricity trading market, fueled by rising trade volumes in power exchanges and augmented partnerships among electricity sector suppliers. Initiatives and favorable trade volumes, especially driven by high electricity demand, are expected to boost market growth.
IEX- CMP 142.70
Key Trends
The electricity trading market is set to witness a notable trend of increased participation from new players, facilitated by power exchanges enabling spot contracts for intraday, next-day, and weekly transactions, similar to commodity exchanges, with payment protection mechanisms for buyers and sellers.
Globally, numerous major companies are venturing into the electricity sector, drawn by business expansion opportunities, leading to intensified competition and competitive pricing in the electricity market, driving growth in the global electricity trading market during the forecast period.
Major challenges
The challenge in the electricity trading market arises from the increasing use of self-generation methods like microgrids and individual power generation, such as solar panels and small wind turbines, reducing reliance on traditional electricity providers.
Microgrids, serving remote and rural areas, gain significance, while the growing popularity of self-generated clean energy, driven by supportive government policies, adversely impacts the forecasted growth of the global electricity trading market.
To access the full news item - click here - Source Yahoo Finance
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