Electricity Market, Trading & Risk Management Programme - Classroom

This Classroom based training course, delivered over two days, will provide participants with a comprehensive knowledge and understanding of the UK and European electricity markets. It will explore the complexity of the markets and provide insight into the risks and opportunities that these markets provide.

Start Time: 09.30
End Time: 17.00
All course payments must be received at least one day prior to the start date

Course Information

Price £1,850 + VAT
Duration 2 days
Location London
Available Dates

Who Should Attend

New or experienced emissions, oil, gas, power and coal traders or brokers

Technical and financial staff in companies with an emissions exposure

Managers with responsibility for trading desks

Senior managers, lawyers, accountants and auditors who need to understand compliance with emissions regulations.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1

Global Electricity Markets in Transition

Current status and future developments

Organisation of the electricity markets

Players Power Market

Relationship Power and Carbon Market

Centralized vs. Decentralize generation

Role renewables

Role Paris Agreement and COP 26 Glasgow

Role Subsidies and Power Purchase Agreements

Flexibility: Storage and Demand Response

Power Price Dynamics


Price Drivers; supply and demand, weather and others

Evolution of volatility in energy markets

o Comparing spot with forward volatility: spikes and mean-reversion


o Causes of seasonality


Exercise: Electricity Pricing

Electricity Value Chain and its risks

The electricity value chain

o Fuels, Generation, Transmission & Distribution, Wholesale, Carbon and retail

Portfolio of Contracts

o Forward sales, retail supply, fuel, CO2, Freight, hedges etc.

Sources of Risk

o Market, Credit ,Operational, Legal and regulatory , Business ,Strategic and Reputation Risk

Electricity Markets: Physical and Financial Trading

Spot and forward trading of electricity

Exchange vs. OTC Trading

Understanding the generation stack

Forward curves for electricity and CO2

The Power Day Ahead Market

Exercise: Electricity Forward Curves

Day 2

Physical Electricity Trading Markets

The different timeframes

Day Ahead

o How to develop a bidding strategy for the power exchange

o How the portfolio can be managed





Ancillary Services

Exercise: Spot Market: Producing a sample bid on the spot market for a generator

Electricity Trading and Risk Management

Trading profit opportunities and risk sharing


Risk management

o Cash flow, counterparty and commodity risk


o Arbitrage

o Cross-regional optimisation

o Cross commodity optimisation

o Timing decisions

Proprietary trading

Trading gas, oil and other commodities to improve performance

Trading electricity contracts: margin requirements, clearing, liquidity, information advantages.

Exercise: MGM Hedging disaster

Electricity Forwards, Futures and Swaps: The Basics

Forwards and futures



Hedging with futures and forwards

Hedging with swaps

Exercise: Electricity Forwards , Futures and Swaps

Basics of Electricity Options

Calls and Puts

Difference between buying and selling options


o Cap, floor

Premium Reduction

o Collars

Hedging applications

Spread Trading

Different Spreads

Spread trading strategies

Clean Spark vs. Clean Dark Spreads

Tolling Agreements

Final Exercise: Asset and Portfolio Trading