Germany
Both sides of the fence
Ernst Eberlein and Gerhard Stahl analyse price series of 25 energy spotrates simultaneously using Lévy models. This model class allows thecapture of stochastic behaviour of these financial instruments.Theimplications of this analysis will form the…
Turbulent times
The new Renewable Sources Act obliges German utility companies to buy all the wind power generated in the country on any one day. And it is adding a new volatility to the German power market. By Stella Farrington
Germany’s closed shop
Despite six years of liberalisation, Germany’s gas market is still virtually closed to outside competition. Writing from Germany, Stella Farrington looks at whether new regulation is finally about to bring change
US retreat hits European trading
The retreat of US energy firms from energy trading has reportedly hit European volumes hard. But volumes aside, James Ockenden finds that the withdrawal may bring a fundamental change in the market. With additional reporting by Eurof Thomas
Exchanges gradually gain pace
After much talk of new trading solutions for German power, only one platform – EEX – has made significant progress, although the new clearing solution from Clearing Bank Hannover seems to be picking up steam. James Ockenden reports
Ahead of the green game
Given the efforts they have already made to reduce emissions, many German firms do not share their environment minister’s enthusiasm for the EU’s new, obligatory cross-border greenhouse gas emissions trading market. Jessica McCallin reports
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
Judicial stalemate
German natural gas market liberalisation is stalled between the courts and a corporatist business culture, finds Maria Kielmas
Energy clearing – solutions for a changing trading environment
E. Michael Jesch, head of business development at Clearing Bank Hannover, examines the effect of energy market liberalisation, globalisation and recent technological advancement on short- and long-term trading
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…
Growing quietly
The liberalised German markets now allow large industrial end-users to manage their energy price risk. But, while the competition to manage their exposures is large, these firms are playing their cards close to their chests, reports Joel Hanley
Clearing the way?
The German over-the-counter market has been growing quickly in recent years, but a series of shocks has sparked fears of credit risk exposure. Can trading regain recent highs and save the OTC market from credit-wary traders, asks Joel Hanley
At home and abroad
Given its location at the centre of Europe, Germany is the key to any future pan-European energy market. But some of its leading companies have their eyes on markets beyond continental Europe, reports Robin Lancaster
Out on its own
European countries tend to have an appointed power market regulator, but Germany has taken a self-regulatory approach. How does the electricity spot price behave as a result? Tobias Federico offers an econometric analysis
Controlling power
Maggi Shippy-Ksionsk and Stefan Ulreich explain how portfolio risk management gives a company control over its energy procurement
At the heart of Europe
As the rest of Europe has still to get fully to grips with cross-border energy trading in a liberalising environment, Germany, Austria and Switzerland are providing an example of a workable regional electricity market, says Eurof Thomas
Two hubs or one?
Independent traders are desperate for a hub that will provide real liquidity and help force the Ruhrgas-dominated German natural gas market to open to competition. Peter Joy reports
Opening up Germany’s gas market
The German government has yet to step forward and commit to the European objective of an internal market for natural gas. Dr Jörg Spicker of Aquila Energy GmbH says now is the time for action
Weather risk solutions
The weather risk management industry is showing encouraging development around the world. Element Re outlines its strategy for keeping up with the growing needs of the market-place