What's shaping the future of energy trading? Insights from DSN Zurich

Earlier this month, we hosted our first DSN event of the year in Zurich, in collaboration with Previse Systems, PowerBot, Volue, and Baringa - bringing together over 60 energy trading professionals from across the industry. It was an excellent platform to connect, exchange ideas, and explore the challenges and opportunities shaping the future of energy trading.

We were honoured to welcome Cornelia Kawann, Head of Market Surveillance at ElCom, who opened the event with a compelling keynote on the evolving market landscape for energy trading. She set the tone for a strong lineup of speakers, Jonas Brucksch (RWTH Aachen University), Isabel Scott-Skinner (Baringa), and Basil Tschümperlin (Alpiq), who went on to share actionable insights on topics ranging from battery storage validation and digital transformation to cultural change and operational agility.

Here is a snapshot of what was covered:

Real-World Validation of BESS with M5BAT 

The battery energy storage system (BESS) market grew over 50% in 2024, confirming its critical role in the future energy landscape. To compete in evolving grid services, batteries must be operated efficiently and in a way that limits degradation - something that requires real-world validation.

The M5BAT research facility offers a proven platform for testing large-scale battery systems. It supports MW-level experiments, delivers high-resolution data, and includes multiple battery chemistries. Operational since 2017, M5BAT is backed by a team with deep expertise in BESS research.

         Jonas Brucksch, Research Associate, RWTH Aachen University

Market dynamics are shifting. The Frequency Containment Reserve (FCR) market is more saturated, while automatic Frequency Restoration Reserve (aFRR) is gaining traction as a liquid and scalable alternative. At the same time, IDC markets are expanding, and offer another revenue alternative for BESS applications.

Looking ahead, aFRR and IDC represent arguably promising revenue streams, especially for multi-hour systems. Capturing this value depends on degradation-aware, efficient operation, which remains a key challenge. That’s where facilities like M5BAT come in - providing the environment to test, learn, and prepare battery systems for the markets of tomorrow.

Unlocking Value in Energy Trading: Data, Complexity & Culture 

Organisations are demanding faster, more reliable access to trusted data - especially to support front office and risk decisions. Building modern data capabilities is complex and costly, requiring a sharp focus on unlocking value incrementally.

Energy trading itself is becoming more complex, with new entrants investing and existing players expanding into new products. In this evolving landscape, two factors stand out as the biggest drivers of successful transformation - scale of change and maturity of the organisation’s ability to adapt.

What drives success? Two factors stand out - the scale of change being attempted, and the maturity of an organisation’s ability to adopt and respond to it. These dimensions were described within Baringa’s “Slug”, a practical lens to assess transformation readiness and investment impact.

Ultimately, organisations that combine strategic use of data, smart technology choices, and strong cultural alignment are better placed to navigate complexity - and lead in the markets of tomorrow.

Isabel Scott-Skinner, Energy and Commodities Trading Partner, Baringa

But capability alone isn’t enough. Cultural infrastructure - shared values and aligned incentives - plays a critical role in whether transformation efforts succeed. Organisations with strong alignment often move faster, work smarter, and adapt better. The path forward lies in combining focused data strategies, cultural alignment, and a clear understanding of change dynamics to deliver real, lasting impact.

Back Office - Staying Competitive Through Meaningful Change 

Change is no longer a choice - it's essential for organisations looking to stay competitive and relevant in today’s complex energy trading landscape. Markets are evolving rapidly, driven by new products, and higher trade volumes. Internally, firms are grappling with rising data volumes, increasing complexity, and growing cost pressures.

A survey done at the event found that 74% of participants agreed that current back office (BO) processes are not ready to handle the increasing complexity of energy trading. This reflects a broader challenge across the industry: transformation needs to go deeper, particularly in the back office, to unlock real value.

A meaningful transformation focuses on three key areas: processes, technology, and people. Processes must be harmonised and flexible, underpinned by clean, trusted data. Technology should automate repetitive tasks - using tools like AI, RPA, process mining, and data platforms - to free up teams for more value-added work. And people must be empowered to work differently, with the skills and mindset to adopt and adapt to change.

The core activities of the BO remain essential, but key shifts are underway. The BO’s size will no longer scale directly with trade volume, as it faces increasing pressure to operate more efficiently. Checks, confirmation, settlement, and reporting processes are accelerating, with shorter cycle times and a growing demand for higher quality and reliability.

Basil Tschümperlin, Head of Back Office, Alpiq

At the same time, the role of BO specialists is expanding, as they take on broader, more complex responsibilities. These specialists are becoming the "problem solvers", focusing on exception handling and process development to streamline operations. The team composition in the BO is also evolving. There's an increasing diversity of skill sets, with more emphasis on data and technology expertise, enabling the BO to better support the dynamic needs of modern energy trading.

To learn more about future DSN events we're collaborating on with Previse Systems, our upcoming Fidectus Summit, or to speak with our team about the latest developments in energy trading, click here. Stay tuned for more.