17. July 2017 / / Comments Off on Tutorial gas market 3: Influence of the LNG market 
For a long time natural gas has exclusively been a grid-bound energy carrier. In consequence, markets for natural were not globalized, but there were several submarkets (see Tutorial 1) which supplied themselves. Furthermore, the price level in the various markets varied as no arbitrage between the markets was possible.
21. June 2017 / / 0 Comments 
Natural Gas is currently the third most important primary energy carrier in the world (after oil and coal). The main advantages of natural gas in comparison to coal or oil are the high efficiency levels that can be achieved when generating electricity from natural gas. As with oil, the global reserves of natural gas are concentrated in a few countries around the world.
27. October 2016 / / Comments Off on Tutorial 8: Trading electricity and clearing a transaction on an exchange 
In the year 2000 the European Energy Exchange AG (EEX) started its business with electricity and other products. The most important part of their business is the futures market. The spot market is taken care for by a subsidiary company EPEX SPOT.
20. October 2016 / / Comments Off on Tutorial 7: Trading electricity on an OTC-market and on an exchange
The OTC market (Over-the-Counter-Market) is a bilateral market where deals are done directly between two traders. This is the main difference to trading on an exchange which is anonymous, which means the trading parties don’t get to know each other.
11. October 2016 / / Comments Off on Tutorial power trading 6: The spot market for electricity
A spot market contract is an agreement to buy or sell a clearly defined amount of a certain good which is traded for immediate delivery at a specific price.
4. October 2016 / / Comments Off on Tutorial power trading 5: The motivation to trade on the futures market
The motivation to buy futures is basically the protection against price risks or arbitrage and speculation.
27. September 2016 / / Comments Off on Tutorial power trading 4: Spot -and futures markets
This part is explains specific aspects of trading electricity. There will be a differentiation between the different market segments, over-the-counter and exchange, as well as the different market places, Spot and Futures market. There will also be a distinction made between the trading and settlement level.
20. September 2016 / / Comments Off on Tutorial power trading 3: Liberalisation of the power sector and the beginning of power trading 
In the end of the 90s the European Union decided to liberalize and deregulate the power markets of its member states.
