|The course describes the electricity market in detail, providing a good understanding of market structures and interjurisdictional trading. Risk management methodologies and borrowing from capital markets are introduced in an electricity market context. Specific derivatives utilized in energy markets, either through exchanges and/or bilateral contracts, are highlighted with examples. Special attention is given to the identification of risk exposure and methods for mitigating risk through energy exchanges and hedging instruments. Topics include market design, market bids and offers, and electricity price formation. The role of Independent System Operators is discussed including transmission pricing, congestion management, firm transmission rights and ancillary services management.
This unique course, first presented at the IEEE Power Engineering Society, provides a solid understanding of the energy risk management tools and strategies necessary to meet the challenges involved in market based power pricing. The course has a practical focus aimed toward the learning concepts required to anticipate the evolution of the power industry. It guides the utility from a regulated environment to an active participant in the open market.
LESSONS LEARNED FROM VARIOUS JURISDICTIONS
MARKET ECONOMICS: Canada, Europe, USA
CONCEPTS OF DERIVATIVES PART I
ENERGY DERIVATIVES PART II
QUANTITATIVE FINANCIAL MODELS
EXAMPLES OF FORWARD CONTRACTS, OPTIONS AND FUTURES APPLIED TO GAS AND ELECTRICITY VALUE-AT-RISK
FINANCIAL TRANSMISSION RIGHTS
CASE STUDY: WEATHER DERIVATIVES