Leading the charge to a digital future
26 January 2023
How did a German utilities company transform trading to remain competitive and get ahead in the energy transition?
The European energy market has evolved significantly in the past decade, driven by market convergence, a rise in renewables supply, increased consumer awareness and participation, and a renewed focus on data analytics.
As one of Germany’s leading municipal utilities, enercity has been on the front lines of this shifting landscape. The company knew its operations need to evolve to meet future needs.
enercity asked us to support a full digital reinvention of its energy trading business. The client had a twofold vision – making existing trading systems and processes more flexible, scalable and efficient, while laying a firm technical foundation for the future.
We shaped the strategy and solutions for a far-reaching trading transformation
Our team began by benchmarking processes and systems, and assessing the existing capabilities of enercity’s trading business against its future needs. Using Baringa’s Trading Capability Model and proven delivery experience, we created a new architectural vision for the trading business, and a roadmap to successfully deliver it.
Next up was scoping and selection. Here, we worked with enercity to shortlist leading energy trading and risk management (ETRM) platforms. Our team took a hands-on, use-case-driven approach to compare the different options. This revealed the boundaries of product capability and delivery risk in the areas that mattered most to enercity, helping them select a solution that truly matched their needs. In parallel, we defined the target operating model and a detailed scope for the ETRM solution together with wider business tools.
Delivering transformation projects is often challenging. But we managed a smooth, fast delivery through collaboration, using our experience and insight to mitigate major risks, and running iterative delivery sprints building on our original conceptual design.
Fit for the future
enercity has redefined its underlying trading business model and advanced its digital readiness for new product growth and diversification. Our team worked side-by-side with enercity on the detailed design and delivery of this new solution and supporting business model changes, and upskilled the enercity team to manage future updates. Together, we delivered the agility the utility needs to power its commercial ambitions in an industry in constant flux.
"The replacement of an ETRM system is a one-in-10-year opportunity. Baringa has helped us to clearly understand our current and future IT architecture challenges, and helped us to select a new lightweight ETRM system in a structured and effective way. On the business side, we developed a new trading business model empowering us to deliver on the benefits from this investment. I’m highly impressed by Baringa’s ETRM and trading business experience and their pragmatic and collaborative working style."
Ralf Henze, Head of Analysis and Optimisation, enercity
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