EXXETA Targets Germanic Energy Markets with its Energy Suite.
EXXETA is an independent, privately-owned medium-sized consultancy that was founded in 2005 and has around 800 staff in 12 locations currently. Like many firms if its ilk, it focuses on multiple industries, including energy, where it offers a range of software products known as the EXXETA Energy Suite. That was the subject of my recent conversation with Sascha Gering, Sales Director for EXXETA.
The product suite is targeted at B2B and the wholesale market, Sascha told me. The products range from customer and sales solutions, through portfolio and risk management to purchasing and trading of commodities, operations and nominations to invoicing. “One of the first products that we developed was market access to exchanges, brokers and internal markets,” he said. “We then merged with ECG in Germany who already had power and gas scheduling apps.” The company also built a portfolio manager to evaluate complex portfolios especially in natural gas where many contracts have optionality, and many are hard to value. From there, the company added on to build an ETRM solution ecosystem. Of course, like many firms of its type, EXXETA also did and still does provide implementation and other services around other ETRM solutions like Ion OpenLink and Ion Allegro but it developed its own solution as well by essentially closing the gap between the market access software it had built and the scheduling software it acquired via the merger.
The EXXETA product is cloud-ready but can be implemented on premises as well. “We believe that we offer a cost-effective solution and flexible integration with our own solution,” he told me. EXXETA also think that performance is a differentiator as they also have an intraday trading module that can capture hundreds of thousands of trades and provide users with an aggregated and near real time portfolio view. By using a micro services architecture, EXXETA believes that they can deliver greater performance with a flexible and highly scalable solution that is very reliable. Currently, the company has two customers for its ETRM solution – a large company in Germany and another in Scandinavia. The solution is still in development, currently with the focus of implementing risk management processes like VaR.
From what I was able to understand and see of the solution, which is primarily targeted at German, Austrian and Swiss markets, it differentiates from many ETRMs in having very strong advanced analytics for valuation of physical deals and assets and also in its portfolio approach. The solution is pretty comprehensive already and with its intraday module and connection to various exchanges for market access, it already has much of what European power and gas traders seek. It will be interesting to track the progress of Exxeta and see how they compete with some of the other European ETRM platforms.
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