Electricity Market, Trading & Risk Management Programme - VIRTUAL DELIVERY

This live virtual training course, delivered over four sessions, will provide participants with a comprehensive knowledge and understanding of the UK and European electricity markets. It will explore the complexity of the markets and provide insight into the risks and opportunities that these markets provide.

Start Times Days 1 - 4: 09.00 London - 13.00 Dubai - 17.00 Singapore
End Times Days 1 - 4: 12.30 London - 16.30 Dubai - 20.30 Singapore

This virtual course is one of the ICE Education LIVE programs. We provide three phases to the course:
1. Pre-course: Access to the ICE Education learning platform for on-demand primer content.
2. Live Virtual Sessions: Trainer led live video sessions (as per the outline below). These are short focused sessions with practical activity and interaction throughout.
3. Post-course: On-demand content remains available and an optional live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.
All course payments must be received one day prior to the start date

Course Information

Price £1,600 + VAT
Duration 4 days
Location Virtual - EMEA/Asian Time Zone
Available Dates
Oct 04 2022  Register Now

Who Should Attend

  • New or experienced emissions, oil, gas, power and coal traders or brokers
  • Technical and financial staff in companies with an emissions exposure
  • Managers with responsibility for trading desks
  • Senior managers, lawyers, accountants and auditors who need to understand compliance with emissions regulations.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1

Global Electricity Markets in Transition

  • Current status and future developments
  • Organisation of the electricity markets
  • Players Power Market
  • Relationship Power and Carbon Market
  • Centralized vs. Decentralize generation
  • Role renewables
  • Role Paris Agreement and COP 26 Glasgow
  • Role Subsidies and Power Purchase Agreements
  • Flexibility: Storage and Demand Response

Power Price Dynamics

  • Non-storability
  • Price Drivers; supply and demand, weather and others
  • Evolution of volatility in energy markets

o Comparing spot with forward volatility: spikes and mean-reversion

  • Seasonality

o Causes of seasonality

  • Correlations

Exercise: Electricity Pricing

Day 2

Electricity Value Chain and its risks

  • The electricity value chain

o Fuels, Generation, Transmission & Distribution, Wholesale, Carbon and retail

  • Portfolio of Contracts

o Forward sales, retail supply, fuel, CO2, Freight, hedges etc.

  • Sources of Risk

o Market, Credit ,Operational, Legal and regulatory , Business ,Strategic and Reputation Risk

Electricity Markets: Physical and Financial Trading

  • Spot and forward trading of electricity
  • Exchange vs. OTC Trading
  • Understanding the generation stack
  • Forward curves for electricity and CO2
  • The Power Day Ahead Market

Exercise: Electricity Forward Curves

Day 3

Physical Electricity Trading Markets

  • The different timeframes
  • Day Ahead

o How to develop a bidding strategy for the power exchange

o How the portfolio can be managed

  • Intraday
  • Balancing
  • Forwards
  • Capacity
  • Ancillary Services

Exercise: Spot Market: Producing a sample bid on the spot market for a generator

Electricity Trading and Risk Management

  • Trading profit opportunities and risk sharing
  • Hedging
  • Risk management

o Cash flow, counterparty and commodity risk

  • Optimisation

o Arbitrage

o Cross-regional optimisation

o Cross commodity optimisation

o Timing decisions

  • Proprietary trading
  • Trading gas, oil and other commodities to improve performance
  • Trading electricity contracts: margin requirements, clearing, liquidity, information advantages.

Exercise: MGM Hedging disaster

Day 4

Electricity Forwards, Futures and Swaps: The Basics

  • Forwards and futures
  • Swaps
  • Definitions
  • Hedging with futures and forwards
  • Hedging with swaps

Exercise: Electricity Forwards , Futures and Swaps

Basics of Electricity Options

  • Calls and Puts
  • Difference between buying and selling options
  • Terminology

o Cap, floor

  • Premium Reduction

o Collars

  • Hedging applications

Spread Trading

  • Different Spreads
  • Spread trading strategies
  • Clean Spark vs. Clean Dark Spreads
  • Tolling Agreements

Final Exercise: Asset and Portfolio Trading