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Electricity

The price is right?

For banks entering the physical power markets the opportunities are many, but pricing contracts in these volatile markets is fraught with difficulties. Aarzoo Shah, Riccardo Anacar and Antony Kakoudakis look at how to tackle these challenges

A question of priority

The US Energy Policy Act of 2005 calls for a review of existing power dispatch methods. But replacing today's regional methods with a one-size-fits-all plan throws up many concerns, writes Richard McMahon

Spectron brokers first UK dark spread

The first brokered UK dark spread has been traded through UK-headquartered brokerage Spectron. The trade, between Sempra and Scottish Power was a Summer ‘06 deal, representing 5,000 tonnes of coal (API#2) versus 15 MW of electricity. It is understood to…

At the flick of a switch

Jesper Andreasen and Martin Dahlgren present a regime-switching model for electricity derivatives that incorporates spiky spot-price dynamics and allows for closed-form pricing of forwards, options and swaptions

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