Handbook of Risk Management in Energy Production and Trading

  • Raimund M. Kovacevic
  • Georg Ch. Pflug
  • Maria Teresa Vespucci

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 199)

Table of contents

  1. Front Matter
    Pages i-xv
  2. Energy Markets

    1. Front Matter
      Pages 1-1
    2. Peter Gross, Raimund M. Kovacevic, Georg Ch. Pflug
      Pages 3-24
    3. Rita L. D’Ecclesia
      Pages 25-45
    4. Florentina Paraschiv
      Pages 47-69
  3. Optimal Decisions in Managing Energy Systems

    1. Front Matter
      Pages 71-71
    2. Andy Philpott, Anes Dallagi, Emmanuel Gallet
      Pages 105-127
    3. Raphael E. C. Gonçalves, Michel Gendreau, Erlon Cristian Finardi
      Pages 129-155
    4. Adrian S. Werner, Alois Pichler, Kjetil T. Midthun, Lars Hellemo, Asgeir Tomasgard
      Pages 177-201
    5. A. Grothey, W. Bukhsh, K. I. M. McKinnon, P. A. Trodden
      Pages 203-230
    6. Maria Teresa Vespucci, Stefano Zigrino, Francesca Bazzocchi, Alberto Gelmini
      Pages 259-282
    7. David Wozabal, Christoph Graf, David Hirschmann
      Pages 283-311
    8. Audun Nordtveit, Kim T. Watle, Stein-Erik Fleten
      Pages 313-351
    9. Luis Baringo, Antonio J. Conejo
      Pages 353-383
  4. Pricing

    1. Front Matter
      Pages 385-385
    2. Raimund M. Kovacevic, Georg Ch. Pflug
      Pages 387-411
    3. Fred Espen Benth, Marcus Eriksson
      Pages 413-432
  5. Long Term and Political Risks

    1. Front Matter
      Pages 433-433
    2. Peter Burgherr, Stefan Hirschberg, Matteo Spada
      Pages 475-501
  6. Back Matter
    Pages 503-505

About this book


This book presents an overview of the risks involved in modern electricity production, delivery and trading, including technical risk in production, transportation and delivery, operational risk for the system operators, market risks for traders, and political and other long term risks in strategic management.  Using decision making under uncertainty as a methodological background, the book is divided into four parts, with Part I focusing on energy markets, particularly electricity markets.  Topics include a nontechnical overview of energy markets and their main properties, basic price models for energy commodity prices, and modeling approaches for electricity price processes.

Part II looks at optimal decisions in managing energy systems, including hydropower dispatch models, cutting plane algorithms and approximative dynamic programming; hydro-thermal production; renewable; stochastic investments and operational optimization models for natural gas transport; decision making in operating electricity networks; and investment in extending energy production systems.

Part III explores pricing, including electricity swing options and the pricing of derivatives with volume control.  Part IV looks at long-term and political risks, including energy systems under aspects of climate change, and catastrophic operational risks, particularly risks from terrorist attacks.


Decision Making Energy Pricing Energy Production Energy Risk Management Energy Trading Operations Research

Editors and affiliations

  • Raimund M. Kovacevic
    • 1
  • Georg Ch. Pflug
    • 2
  • Maria Teresa Vespucci
    • 3
  1. 1.Department of Statistics & ORUniversity of ViennaWienAustria
  2. 2.Department of Statistics & ORUniversity of ViennaWienAustria
  3. 3.Department of IT & Mathematical MethodsUniversity of BergamoDalmineItaly

Bibliographic information