The rise of algos in power markets
Automation is transforming renewable energy trading. Today’s high-frequency, algorithmic systems account for as much as 70% of volumes on European power exchanges (up from 44% in 2020). Firms like InCommodities in Denmark—labelled the “Silicon Valley of energy trading”, are using proprietary algorithms to manage sun- and wind-driven volatility and edge out traditional desks. (ft.com)
Manual trading simply doesn’t cut it anymore. Algos react instantly to market signals—weather, generation patterns, grid congestion—executing intra-day power trades in milliseconds.
Required technical toolkit
To stay relevant, today’s energy traders need to build a hybrid skillset that blends market knowledge with tech proficiency:
- Python (or C++) for automation & data processing
- Data Science & Machine Learning
- Real‑time data streaming & integration
- API exposure & infrastructure knowledge
Concrete benefits—why it matters for your career
Master traders with talented algo teams at places like InCommodities and Equinor are producing €1–1.5 bn post-tax profits. A 1% cut in MAPE error can save utilities ~$600k/year. Disruptive firms are hiring quant traders, risk technologists and AI experts. (Sources: www.ft.com, wikipedia.org)
How to begin your algorithmic journey
Start small, build momentum:
- Create a Python proof-of-concept
- Learn applied ML for energy trading
- Build your demo and CV
- Highlight your hybrid edge in interviews
Key takeaways for ambitious energy traders
| What to learn | Why it matters | How to start |
| Python & APIs | Automate order execution and data ingest | Build a strategy script pulling market/weather feeds |
| ML & Forecasting | Improve predictive accuracy and edge | Backtest price/load models; publish results |
| Real-time streaming | Compete at intra-day speed | Prototype with Kafka + Flink local setup |
| Risk & Governance | Navigate algorithmic bias, regulation | Stay up-to-date on REMIT/EEX rules and incident reviews |
| Soft skills | Collaborate, communicate, lead algotools adoption | Mentor peers, explain model logic to non-tech teams |
Algorithmic trading is the NOW for renewable energy markets. Those who blend power-market expertise with coding, data science and integration skills will lead the way.
Charles Levick are the leading recruiter in this market – whether you’re actively looking for your next role, would like some advice on the jobs market or need a full career consultation, get in touch with Ashdon Brown or Alicia Hutchinson.
