Valuation, Hedging and Speculation in Competitive Electricity Markets: A Fundamental Approach (Power Electronics and Power Systems)
| Author | : | |
| Rating | : | 4.99 (538 Votes) |
| Asin | : | 0792375289 |
| Format Type | : | paperback |
| Number of Pages | : | 214 Pages |
| Publish Date | : | 2017-01-25 |
| Language | : | English |
DESCRIPTION:
A 20 page paper blown up to 200 pages A Customer The main point of this book is a relatively simple model for the spot price of power based on stochastic supply and demand. The rationale for the model is presented along with description of an estimation procedure. Due to the lack of data the model is not fully estimated, which makes the whole exercise rather academic. that's the valuable 20 pages. the rest, imho, is filler
Meeting these challenges will require the knowledge and experience of both the engineering and finance communities. The goal of this book is to convey the fundamental differences between electricity and other traded commodities, and the impact these differences have on valuation, hedging and operational decisions made by market participants. The finance community believes that engineering models are too detailed and complex to be practically applicable in the fast changing market environment. While both views have merit, neither group has by themselves been able to produce effective tools for meeting industry challenges. The optimization problems associated with these decisions are formulated in the context of the market realities of today's power industry, including a lack of liquidity on forward and options markets, limited availability of historical data, and constantly changing regulatory structures.. Engineers counter that the finance models are merely statistical regressions, lacking the necessary structure to capture the true dynamic properties of complex power systems. The challenges