I have been reading around energy markets recently and recent schemes such as Voluntary Carbon Markets, similar to the 'cap and trade' style of the Kyoto Agreement in 1997.
I have been reading in particularly about energy derivatives. But I have a question about the delivery of these commodities. I understand how, for example, oil gets delivered. Simply, barrels get shipped to your location with arrival at maturity. However, with electricity market derivatives, how does that get delivered? Say if a trader were to take a futures contract for a certain wattage of electricity, how does it get delivered? I doubt it would be as simple as a fuel cell showing up at your front door? Or does some other kind of deal with an energy supplier/ national grid get worked out?
I have done some research but I can't see anything about the method of delivery. This site here says that electricity derivatives are deliverable, but how?
Edit: I'd like to specify a particular market, anything regarding Europe or North America would be really insightful. Especially if anyone has any answers regarding delivery during the recent winter storm in Texas.