Energy Trading

Definition ∞ Energy trading involves the buying and selling of energy commodities, such as electricity, natural gas, or renewable energy credits, often through specialized markets or exchanges. Participants engage in these activities to manage risk, optimize supply and demand, and speculate on price movements. It is a complex market influenced by geopolitical events, weather patterns, and regulatory policies. The practice facilitates the efficient allocation of energy resources.
Context ∞ Within crypto news, energy trading gains relevance through the substantial power consumption of proof-of-work blockchain mining. Reports often cover how miners strategically purchase or sell energy, sometimes using excess renewable energy. Blockchain technology itself could decentralize and optimize energy grids, presenting new avenues for market participation.