Electricity: A unique commodity
100% Fungible
Electricity as a commodity is completely fungible. This means 1 MVH electricity contains exactly the same amount of energy no matter the production type.
Non-storable
Electricity is, unlike most commodities, non-storable. At least in larger quantities and considering the cost. This means it must be produced and used simultaneously.
Highly variable
Both supply and demand have strong variability. For instance, green energy production is highly un-predictable while demand is variable but also highly in-elastic.
Grid-bound
Supply must - at all times - be equal to demand. And in every node of the network. This physical constraint is also known as Kirchoffs's law of Current. To ensure this balance, the market is highly regulated.
Basir Belal
Co-founder & CEO
"The unique features of energy combined with market complexity create enticing mysteries to unravel."
