SET Ventures portfolio company, Etpa is aiming to disrupt the power trading sector and have now officially launched their platform onto the European Power Market.
Power trading holds many similarities to the world of stock trading. But instead of stocks, traders buy and sell electricity within the energy industry. Different forms of trading may exist based on market designs, spanning from short-term spot markets (where Etpa specialises) to long-term power purchase agreements.
But while the world of Wall Street long ago moved on from manual trading to one based on algorithms, the power trading sector is only beginning to follow suit. With many professional traders arguing that today’s power trading platforms are ineffective at capitalising on the volatile power prices frequently seen in our current energy system which are caused largely by fluctuations in wind and solar sources.
This is because most trading platforms either limit the volume of transactions a trader can make or are so unreliable in their availability that traders cannot depend on them. Often resulting in them missing out on trades through no fault of their own.
Etpa realised this issue and moved swiftly to solve it. Since receiving a €5 million investment in 2022 from SET Ventures and the ABN AMRO Sustainable Impact Fund, Etpa has been in execution mode building out its solution.
Their innovative trading platform combines unparalleled trade processing speeds with access to high volume trading. Meaning it can process more trades at a constant speed that currently drowns today’s platforms and users never miss another trade again.
Etpa also opens new opportunities for smaller traders who previously could not overcome the costly barrier of clearing bank fees, as Etpa offers lower cash requirements for settlements (no collaterals and lower fees). Any company with as low as 0.1 megawatt capacity in the Netherlands can utilise Etpa’s trading platform for the energy spot market. Meaning companies of all sizes can easily access energy trading revenues with a guaranteed fair market price, further incentivising the transition to clean energy.
When asked about the launch, Etpa CEO, Michiel Lensink had this to say: “We are thrilled that traders can now see the power of Etpa. Our superior speed and stability are truly game changers for this industry. Traders can now feel confident that they have the tools they need to never miss another trade.”
The company plans to expand its offering into Germany and Austria later this year, and France, Belgium and Denmark markets in 2024.
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