【20级MME】Energy Trading Fundamantals
The number of players in power markets, players’ competing interests, and evolving regulatory policy gives electricity markets a unique niche in the world of commodity trading. The unique physical characteristics of the product, coupled with the constraints associated with of its delivery have created opportunities for trading shops and major corporations to rise and fall in a little more than a decade. As this market (slowly) matures, and regulation continues to improve market transparency and efficiency, it will be a bumpy ride. To better understand where these markets are going and where they have been, we shall first obtain a historical perspective. With a concrete understanding of the market evolution, we will then investigate what factors influence market prices on a long term, day ahead, and real time basis. We will also study the infamous market failures, and how regulators have responded to eliminate opportunities for indiscretion. The course will conclude with a brief look at several recent regulatory enactments to more closely align the interests of all market participants and stakeholders. This course will include market simulation exercises which will give students the opportunity to experience Power Marketing from the perspectives of a pure-marketer, independent power producer, and regulated utility.