LearnETRM — Visual Explainer

Power Trading
PNL & MTM

How a German power trade on the EEX is captured, how volume aggregates to MWh, and how mark-to-market P&L is calculated when prices move.

EEX Exchange
Base + Peak Products
EUR/MWh Price Unit
MTM Valuation
Scroll to explore
Chapter 01
01 — Products

Base load
vs. Peak load

Base load delivers power 24 hours a day, every day of the delivery month — including weekends and holidays. It's round-the-clock energy, typically cheaper per MWh because it includes low-demand off-peak hours.

Peak load covers only 12 hours on weekdays (08:00–20:00). No weekends, no holidays. Because it targets the highest-demand window, peak products command a premium price.

ETRM systems must treat these as separate volume streams with different hours and prices, then aggregate both to MWh for valuation.

00:00 02 12:00 22 06:00 18:00 08 16 BASE 24h × all days PEAK 12h × weekdays
Chapter 02
02 — Aggregation

Volume Aggregation

MW describes capacity. MWh describes energy delivered. ETRM converts capacity to energy: Volume (MWh) = MW × Hours/day × Days

Base
33,600 MWh
Peak
7,200 MWh
Base: 50 MW × 24h × 28 days = 33,600 MWh
Peak: 30 MW × 12h × 20 weekdays = 7,200 MWh
Total: 40,800 MWh
Chapter 03
03 — Valuation

Mark-to-
Market

Trade value = Trade price × Volume (MWh).
Market value = Current market price × Volume (MWh).

For a BUY trade: if the market price rises above your trade price, you have an unrealised profit. If it drops, you're sitting on a loss.

For a SELL trade, the logic inverts. MTM is computed per component (base, peak) and then summed.

Trade Price
€85
Market Price
€88
MTM P&L Formula
BUY: (Market − Trade) × MWh
SELL: (Trade − Market) × MWh

+€100,800 = (€88 − €85) × 33,600 MWh
Chapter 04
04 — Over Time

Price Changes &
P&L Impact

Markets move. At T0 (trade date), market price equals trade price — MTM P&L is zero. At T1 (say T+7 days), prices have shifted. The delta between new and old MTM reveals how much the position gained or lost.

Try it yourself
05 — Interactive

Calculator

Adjust the inputs below and watch volume, valuation, and P&L update in real time.

Trade Inputs
days
days
MW
MW
EUR/MWh
EUR/MWh
Market Prices (MTM)
EUR/MWh
EUR/MWh
Volume
Base hours
Peak hours
Base volume (MWh)
Peak volume (MWh)
Total volume
MTM Valuation
Trade value
Market value
Base MTM P&L
Peak MTM P&L
Total MTM P&L
Price Change Scenario (T+7)
Volume Aggregation (MWh)
Base Peak
MTM P&L by Component
Base P&L Peak P&L
Important
Limitations
MTM here is theoretical — no funding, collateral, or discounting. Volume aggregation assumes fixed days/hours and standard weekday definitions for peak; calendar and product definitions can vary by exchange. Real ETRM systems also handle settlements, nominations, and risk limits.