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Blog by Energy Brainpool GmbH & Co. KG

Tag: Tutorial (page 1 of 5)

Tutorial gas market 1: Geopolitical framework conditions of the natural gas markets

Gas transport facility Chongqing (China Daily) 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.
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Tutorial 8: Trading electricity and clearing a transaction on an exchange

trading_power_large (Copyright: Mercuria) 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.
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Tutorial 7: Trading electricity on an OTC-market and on an exchange

trading_power_large (Copyright: Mercuria) 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.
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Tutorial power trading 6: The spot market for electricity

trading_power_large (Copyright: Mercuria) 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.
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Tutorial power trading 5: The motivation to trade on the futures market

trading_power_large (Copyright: Mercuria) The motivation to buy futures is basically the protection against price risks or arbitrage and speculation.
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Tutorial power trading 4: Spot -and futures markets

trading_power_large (Copyright: Mercuria) 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.
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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.
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Tutorial power trading 2: Full supply contracts

As all the risks in a full supply contract are on the supplier’s side, he aims at setting the prices of the full supply contract accordingly. Therefore full supply contracts are generally quite expensive.
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