A UtiliPoint IssueAlert
By Gary M. Vasey

Prior to the collapse of the Merchant energy segment, the North American Trading and Risk Management tradeshow was a vibrant and well attended event but in recent years many of the big tradeshows in that industry space have died off or died out altogether. But not here in Europe! E-World Energy and Water held every year in Essen, Germany has over 500 exhibitors ranging across the industry from large energy companies such as RWE, Vattenfall, CEZ, and the like to small software vendors and data providers. The coverage of the show is both trading & risk management and inside the Utility so covers smart metering, smart grid, CIS and more. Furthermore, the event was absolutely packed.

I have mixed feelings about tradeshows. On the one hand it presents a super opportunity to learn more about industry trends and events as well as to meet new contacts and old friends but it is also tiring and hard on the feet and back. For me however, E-World provided a snapshot of the European energy world and how it has changed! You just need take a look at some of the tag lines used by some of the energy companies to realize this:

"Making Electricity Clean" —Vattenfall

"Pure Energy" —Statkraft who also portray themselves as "The European Leader in Renewable Energy"

"Positive Energy" —EnerCity

"Your Partner in a Dynamic World —E.On

"Economic Sustainability" —Endesa

"All Your Energy Needs from One Reliable Company" —CEZ

In fact, the energy company exhibits included electric cars, solar-powered cars, wind mills and Smart Grid/Meter/Appliances. One could have thought that this was an environmental tradeshow! But it goes to show how the European consumer of energy is concerned about the environment and how they seek providers who are not just reliable but provide energy from renewable sources. Energy in Europe, it seems, has to increasingly be seen as ‘clean’ from the consumer’s perspective.

This year, I observed very few new software vendors at E-World. Instead, there were many new consulting companies and initiatives around green energy, carbon trading and other environmental initiatives. Outside of the energy companies themselves with their huge two story booths, side shows and exhibits, one of the largest booths was Point Carbon, an environmental/energy advisory and consulting firm. The public theme was definitely around clean energy and related topics.

And yet was it? Tradeshows happen for a reason and that is to facilitate business and here it is business between traders. Under the surface of the green theme and posturing one could detect business being done between originators and traders. Almost every exchange in Europe was also present adding to the perception that here in Europe the trading business is still very much about networking and personal contacts. Several larger banks also had booths with private areas for discussion out of sight. These areas were invariably full of suited individuals engaged in deep discussions ostensibly about risk management and trading strategies. To back this up, much of the news reported at the event revolved around market liquidity, new trading instruments and accusations of market manipulation against one large European utility.

Tradeshows are alive and well in Europe and while they present an opportunity to "image make" and message spin about "green energy" the truth is some real business was being done between traders and that is what these events are really about. It is still a people business which requires relationship building and networking and based on what I saw—it is thriving.

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