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Electricity Market, Trading & Risk Management Programme - VIRTUAL DELIVERY

Course Information

Price£1,950.00 + VAT
Duration4 days
LocationVirtual - EMEA/Asian Time Zone
Available Dates
September 08, 2025Register Now

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

  • 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

Day 2

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 3

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

Day 4

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