Electricity
The bigger they come…
The German market is at the heart of the European power business, but it has stuttered since its early promise, and has yet to set the pace for the region as a whole. From a new entrant’s point of view, this is only to be welcomed, argues Ben Tait
Option pricing for power prices with spikes
European power prices are very volatile and subject to spikes, particularly in German and Dutch markets. Ronald Huisman and Cyriel de Jong examine the impact of spikes on option prices by comparing prices from a standard mean-reverting model and a regime…
Standardising electricity contracts
Electricity contracts have come and gone, but a new trio of financially settled futures contracts aims to widen the electricity market, reports James Ockenden
The Power Sector Model
David Soronow, Mike Pierce and King Wang, of Financial Engineering Associates, introduce the firm’s Power Sector Model as the next step in derivatives pricing
Making sense of the new power market
Bank of America’s Rogers Herndon and David Mooney examine expectations in the energy and power markets before and after the collapse of Enron and outline their predictions for the future
Power price discovery in Europe
Logical Information Machines’ Sandy Fielden compares different price discovery mechanisms in European electricity markets
Entergy-Koch reaps the benefit
While its quiet discipline made Entergy-Koch Trading one of the less glamorous energy trading houses during the Enron boom years, its steady business model is now paying off, as James Ockenden reports
Out of the zone: nodal pricing takes hold
Congestion-constrained US electricity markets are likely to find relief with the arrival of a new pricing regime, reports Catherine Lacoursière
Risk and reward at the speed of light: a new electricity price model
Samuel Bodily and Michel Del Buono propose a new electricity price model. The mean-reverting proportional volatility model matches important characteristics of power price dynamics where others, such as geometric Brownian motion, fall short
A tight ship in rough waters
Power prices in the UK have fallen dramatically in recent months. What can the UK’s biggest power producer do to prevent more losses in this difficult market? Joel Hanley profiles British Energy
TXU finds the right combination
Kevin Foster looks at the reasons behind TXU Energy’s choice of Knowmadic’s Integration Suite data management software, and at the product’s features
Courses for Californian water resources
No discussion about the state of the energy industry is complete without mentioning the Californian power crisis. Catherine Lacoursière interviews Pete Garris, acting deputy director of the California Energy Resources Scheduling division (CERS) at the…
Modelling weather-sensitive electrical loads
Here Véronique Bugnion, Aram Sogomonian and Glen Swindle introduce a new methodology for forecasting and jointly simulating temperature and electrical load