Risk Management in Electricity Markets

Risk management is a significant factor in today s
liberalized, restructured wholesale electricity
markets. In particular this book analyzes the trading
and investment risks due to transmission congestion
both in the short- and long-term for market players
such as generators, loads, traders, independent
system operators and merchant investors.

The first part describes the book s theoretical
foundation and background.
The second part comprises eight research papers that
analyze: several existing markets for transmission
congestion derivatives; merchant long-term financial
transmission rights; the risks of the independent
system operator in providing financial transmission
rights; inefficiencies associated with ignoring
losses when utilizing area (zonal) pricing; and an
application of an integrated risk management model to
the power sysem of Norway s second largest hydropower
producer.

Researchers, energy economists, power system
engineers, operators, planners and policy makers will
find this book of value.

Autorentext

PhD: Studied Electrical Power Engineering atNorwegian University of Science and Technology. Energy TradingAnalyst at RBS Sempra Commodities.

Klappentext

Risk management is a significant factor in today'sliberalized, restructured wholesale electricitymarkets. In particular this book analyzes the tradingand investment risks due to transmission congestionboth in the short- and long-term for market playerssuch as generators, loads, traders, independentsystem operators and merchant investors. The first part describes the book's theoreticalfoundation and background.The second part comprises eight research papers thatanalyze: several existing markets for transmissioncongestion derivatives; merchant long-term financialtransmission rights; the risks of the independentsystem operator in providing financial transmissionrights; inefficiencies associated with ignoringlosses when utilizing area (zonal) pricing; and anapplication of an integrated risk management model tothe power sysem of Norway's second largest hydropowerproducer. Researchers, energy economists, power systemengineers, operators, planners and policy makers willfind this book of value.