Over the past few episodes, we've taken a detailed look at futures and futures markets, where electricity is traded at a specific price before delivery.

But advance predictions are never completely accurate – and so suppliers need to refine their predictions – the industry term for this is 'add shape'.

They do this to meet more dynamic, up-to-date forecasts of their customers' demands.

This is where the spot market comes into the picture. The spot market is intended for day-ahead and intraday trading.

It is called the 'spot' market because it is the market for 'on-the-spot' trading, such as trading for the here and now.

And 'day ahead'? Yep, you guessed it: day-ahead trading means electricity is bought and sold for delivery at some point in the next day.

Intraday trading (also called “within-day” trading) means that electricity is bought and sold for delivery on the same day.

More information: https://platform.modo.energy/phase

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