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Tag: Price Volatility

All Articles about Price Volatility

Investitionen in Batterien: Chancen und Risiken

Battery Investment: Opportunities and Risks

Battery energy storage systems are becoming a cornerstone of Germany’s energy transition. We explore the financial opportunities and risks in Germany’s wholesale and balancing markets.

Chart of German day-ahead electricity market showing average price levels and HL spread, illustrating the 2024 decoupling of volatility from overall prices due to renewables and the need for short-term flexibility

The Great Decoupling

Electricity (cross-product) price volatility has historically been closely linked to overall price levels. This trend seems to have ended in 2024 in Germany, as low marginal cost renewables are pushing the overall wholesale price level down, while peakers such as gas and batteries need to finance their investments in relatively few but increasingly expensive production hours

PPA Hedge mit Flexibilität aus Batterie-Struktur gegen Preisvolatilität

How to Purchase Power in the 20s and 30s, Part II: Hedging Price Volatility in Consumption with FlexHL (Battery) Shapes

In this subsequent blog, we extend our discussion from part I and look at how to use Flex HL (battery) shapes to hedge against price volatility.

A new index by FlexPower shows the current and historical value of flexible dispatch resources in energy trading

New Index Calculates Value of Flexibility in the German Electricity Market

The FlexIndex measures on a daily basis the revenues that operators of flexible assets can achieve in Germany’s short-term spot market. The index is based on a reference battery with a storage capacity of one megawatt-hour and a power of one megawatt.