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Course Detail
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 | £1850.0 + VAT | ||
|---|---|---|---|
| Duration | 2 days | ||
| Location | London | ||
| Available Dates |
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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
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
Non-storability
Price Drivers; supply and demand, weather and others
Evolution of volatility in energy markets
o Comparing spot with forward volatility: spikes and mean-reversion
Seasonality
o Causes of seasonality
Correlations
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
Intraday
Balancing
Forwards
Capacity
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
Hedging
Risk management
o Cash flow, counterparty and commodity risk
Optimisation
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
Swaps
Definitions
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
Terminology
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