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227-0730-00L 2 Credits
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Power Market II - Modeling and Strategic Positioning

Strommarkt II - Modellierung und strategische Positionierung

Lecturers & Examiners: Dr. Dieter Reichelt
VVZ CR n/a

Last Updated: 2026-02-05 15:10:09

Abstract

Model to price options, analysis of sensitivities, delta and gamma neutral hedging of a portfolio, financial modelling of physical assets, evaluation of power plants using discounted cash flows or real options, management of a portfolio.Analysis of the markets and the environment, SWOT analysis, develop strategic options.

Objective

Pricing and modelling of derivatives based on electricty prices, power economies in open markets, development of the stategic position of utilities, evaluation of power plants and long-term contracts.

Content

Option pricing, modelling of electricity prices, binominal trees, Black-Scholes, advanced price modelling for electricity markets (mean reversion), further derivatives on electricity market prices: swaps, caps and floors, swaptions, spread options, exotic options, power economies in open markets, modelling of the uncertainties of hydraulic production (profit at risk), unbundling of grid and production/trading, balancing areas, ancillary services, energy data management, market for ancillary services (regulating power), evaluation of power plants and grids using discounted cash-flows including risk, long-term contracts, development of the stategic options of utilities in a dynamic environment, examples of European utilities.

Resources

Lecture Notes

Handouts during the lecture

General Information

Language
German
Frequency
Yearly recurring

Examination

Type
session examination
Mode
oral 30 minutes

Course Components

Type Title Time & Place Hours
lecture with exercise Strommarkt II - Modellierung und strategische Positionierung
  • Wed 08:15-10:00 (ETZ E 9)
2 h weekly

Offered In