As a result of storability restrictions, the price risk management of flow commodities (such as natural gas, oil, and electrical power) is by no means a trivial matter.To protect price spikes, consumers purchase diverse swing-type contracts, whereas contract writers try to hedge themselves by...

As a result of storability restrictions, the price risk management of flow commodities (such as natural gas, oil, and electrical power) is by no means a trivial matter.To protect price spikes, consumers purchase diverse swing-type contracts, whereas contract writers try to hedge themselves by...

This work deals with strategy optimization for electricity producers. We consider two types of auctions used to maintain the real-time ballance for production and consumption of electricity. For both auction types, we calculate the market equilibrium and discuss its properties. Copyright...

The existence of mandatory emission trading schemes in Europe and the United States, and the increased liquidity of trading on futures contracts on CO₂ emissions allowances, led naturally to the next step in the development of these markets: These futures contracts are now used as underliers for...

We address a method for pricing electricity contracts based on the valuation of the ability to produce power, which is considered as the true underlying factor for electricity derivatives. This approach shows that an evaluation of free production capacity provides a framework where a...

This work deals with strategy optimization for electricity producers. We consider two types of auctions used to maintain the real-time ballance for production and consumption of electricity. For both auction types, we calculate the market equilibrium and discuss its properties. Copyright...