Electricity is an extremely flexible and essential form of energy in modern societies. It commonly generated in power stations using natural gas, coal, nuclear, or in natural occurring structures such as water turbines in dams and in wind farms.

Electricity as an energy source has an inherent disadvantage in that it cannot be stored in abundant amount for a long period. As such, the generation and trading of electricity have to be closely aligned with estimations of demand and trading of electricity is a closely monitored affair.

Trading of electricity is carried out in wholesale electricity markets between electricity generators such as Germany’s European Energy exchange (EEX), France’s Powernext and Great Britain Elexon. There is also a similar retail electricity market whereby retail resellers, financial institutions and end-users managed their electricity risk by purchasing futures contracts.

Countries with the largest electricity generation are United States, China, Japan, Russia, India, Canada, Germany, France, Brazil and South Korea.