1-1. SANIA POWER'S MAIN ACTIVITY

SANIA Power AG has built a successful business on trading energy commodities in the last seven years. The Company's power and natural gas trading activities cover time-delimited markets from forward to day-ahead and intraday. SANIA Power is a Central European Gas Hub member. The Company challenges market inefficiencies with international trade, moving energy from where there is more than needed to where it is needed most.

Through energy commodity trading SANIA Power transforms energy in space, time, and form.

Note: Main energy commodities are electricity (power), natural gas (LNG), crude oil, gasoline, heating oil, coal, and ethanol.

Using comprehensive data sets, analytical capabilities, automation and deep market knowledge, the Company turns information and data into knowledge and knowledge into business success and profit.

The market expertise, extensive market presence and 24-hour trading setup help SANIA Power support its customers through tailor-made services for renewables producers, conventional assets, and energy suppliers.

1-2. ENERGY COMMODITY TRADING

At SANIA Power, we trade power across borders, buying it in areas where there is a surplus of energy, and flowing it to areas where the demand is high. Take a windy day in Germany as an example. On windy days, wind farms in Germany can produce more power than what can be consumed within the German borders. If this coincides with a hot summer day in Austria, and every household and company in the country switch on the air-condition, more power is consumed than local power producers can provide. Instead of switching off wind turbines in Germany because we cannot consume the produced power locally, companies like SANIA Power can flow it to Austria, thereby keeping grids balanced and power prices fair. The example above is of course, simplified. In practice, SANIA Power constantly buys and sells power across EU energy markets, completing many trades every week.

Adding to the complexity, power must be consumed the instant it is produced because there are currently no widespread means of storing it in large volumes. So, how do you make sure that power bought in one country at a certain point in time can be consumed thousands of kilometres away at exactly the same time? The responsibility for making this happen lies in a close cooperation between the power traders and Power Trading Operations.

1-3. OPTIMISATION SYSTEMS

Though power cannot be seen with the naked eye, it is a physical commodity that is moved from where it is produced to where it is consumed. Our team develops and maintains systems that help our traders find the most optimal way of flowing power across markets. To do that, we have power grids that connect countries across borders.

In buying and selling power, traders need to buy grid capacity to make sure that there is free 'band width' to flow the power. In some markets, an IT system automatically matches market bids if transmission capacity is available, meaning the power is flown automatically through the exchange.

When this is not the case, our optimisation models are ready to play their part. When the capacity is in place and deals have been struck, the optimisation models are ready to play their part. These systems are essentially mathematical models that combine a wide range of factors – the trades crisscrossing geographical borders, the grid capacities acquired for the given time, price expectations and market data. Based on these factors, the systems establish the optimal way of distributing the power from where it is produced to where it is consumed. As fast as snapping your fingers. Again and again. 24/7.

1-4. SANIA POWER'S TRADING ACTIVITY

THE MARKETS WHERE OUR COMPANY TRADES

A.) FORWARD MARKET

  • Forward power and gas trading, covering different derivative products (futures, options, spreads)
  • Trading products with yearly to daily maturities
  • Trading products with different load profiles (base, peak, profile)
  • Physical and financial settlement via standard or structured contracts
  • Booking of long-term capacities and gas storage
  • Trading through large bilateral networks

B.) DAY-AHEAD MARKET

  • Day-ahead power and gas trading
  • Active in Central European Gas Hub
  • Extensive trading network
  • Physical settlement of contracts
  • Daily dispatching and scheduling of power and gas flows
  • Booking of short-term capacities
  • Meteorologists combined with advanced forecasting models

C.) INTRADAY MARKET

  • Intraday power and within-day gas trading
  • Trading 24/7/365
  • Trading from 24 hours to 15 minutes before delivery
  • Physical settlement of contracts
  • Booking of short-term capacities
  • Automated trading and dispatching

1-5. OUR SERVICES

SANIA Power realises the full potential of energy resources by offering energy-related services to customers and trading power and gas in European energy markets.

A.) RENEWABLES

The volatile nature of power generation from renewable assets presents producers and developers with considerable challenges. The key to success is finding the right partner to help manage and sell the power produced, balance requirements and generally control market risks. SANIA Power operates a significant portfolio of renewable assets and has a proven track record in the field. This provides us with relevant expertise and a profound understanding of how to make the market work for our customers.

SERVICES FOR RENEWABLE ASSETS

  • Management of contract portfolios
  • Power Purchase Agreements (PPAs) on both standard and individually structured terms
  • Production management and balancing (forecasting, scheduling, and reporting) with market access
  • Tailor-made hedging services
  • Participation in the market for ancillary services

B.) CONVENTIONALS

Maximising the return from a conventional power production unit is no easy task, with price volatility, demanding environmental requirements and political uncertainty. Identifying and connecting the flexibility of the asset with the most value-adding markets is essential, and SANIA Power can provide hands-on experience to help customers increase the value of their power plants.

SERVICES FOR CONVENTIONALS

  • Management of portfolios
  • Production management and balancing (forecasting, scheduling, and reporting)
  • Production optimisation of power
  • Trading of relevant emission certificates such as EUAs

C.) SUPPLY

Whether you are a wholesaler or an industrial company, optimising your power consumption is necessary in order to maximise your value. SANIA Power is an expert in this field. The Company procures and optimises wholesale consumption and tailors individual portfolio management solutions for its wholesale partners to match their needs and add value to their operations.

SERVICES FOR CONSUMPTION CUSTOMERS

  • Consumption management and balancing (forecasting, scheduling, and reporting) on a 24/7 basis.
  • Consumption optimisation, turning market volatility into an advantage.
  • Hedging solutions tailored to the specific consumption profile, ensuring optimal risk coverage.

D.) USING COMMERCIAL EXPERTISE AND TECHNOLOGY TO LEVEL UP GAS TRADING

Digitalisation has opened a wealth of opportunities. New technologies are reshaping gas trading at an accelerating pace, and SANIA Power is fusing commercial expertise with technical skills to grow an even stronger business.

SANIA Power increases its traded gas volumes – and with the financial strength and the continued support of our business model, we are looking forward to expanding our presence in the European gas markets, adding new opportunities as we grow our business.

E.) BUSINESS ACUMEN + TECHNOLOGY = SCALABILITY

We are ready to scale up with the necessary adjustments required to our setup. Since our tool environment was built in-house, anything that needed changing could be done quickly and in a very customised way. Automation can help in many ways; the biggest time saver is, of course, the elimination of repetitive tasks, which frees up time and improves execution quality. Combined with the strong business acumen of our traders and analysts, automation and the necessary capital allow us to develop our business smoothly and efficiently.

F.) DECLINING ROLE OF MANUAL PROCESSES

Digitalisation facilitates the automation of manual processes, for example, some elements of trade execution, creating a more efficient setup and freeing up resources. It also helps facilitate decision-making based on easily digestible intelligence – eventually, the decision-making process can be automated. These decisions can be combined with automated execution. Automation at SANIA Power has many faces, e.g., facilitating market execution, allowing scalability and identifying signals in data not readily available to the traders. The big wins sometimes lie in automating the small things – it is about improving the efficiency of the workflow, especially around mundane and repetitive tasks, which frees up time and creates robustness in the setup.

G.) AN INTEGRATED VALUE CHAIN APPROACH

We strongly believe that the commercial side of the business and automation link very well together. In SANIA Power's gas business, we apply an integrated value chain approach to harness the symbiosis between trading and technology, bringing all parts of value generation closer together. As part of our integrated approach, we organise our business to bring technical experts like software developers and business intelligence specialists together with traders, effectively rubbing shoulders every day to create a common understanding, efficient alignment and share the successes. Together, we will succeed in building a digitally enabled business where our people can focus on value-adding tasks, like optimising our product portfolio and developing trading strategies.