Abstract
Since 90s power markets are being restructured worldwide and nowadays electrical energy is traded as a commodity. Therewith the question how to manage and hedge the financial risks resulting from uncertain electrical power and fuel prices is essential for market participants. There exists a rich literature on risk management in energy markets. Some noteworthy references can be downloaded from our web resources [1] and are reviewed in the cited literature. Let us first investigate the market structure and then discuss two different pricing schemes for risk management in power industries.
This research project is gratefully supported by the Swiss Innovation Promotion Agency KTI/CTI in collaboration with the industrial partner Nordostschweizerische Kraftwerke AG.
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Doege, J., Fehr, M., Hinz, J., Lüthi, HJ., Wilhelm, M. (2007). On Value of Flexibility in Energy Risk Management. Concepts, Models, Solutions. In: Waldmann, KH., Stocker, U.M. (eds) Operations Research Proceedings 2006. Operations Research Proceedings, vol 2006. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-69995-8_15
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DOI: https://doi.org/10.1007/978-3-540-69995-8_15
Publisher Name: Springer, Berlin, Heidelberg
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