Competitive Electricity Markets

Seminar Overview

HAEE’s introduction to the “Competitive Electricity Markets” Seminar, provides a comprehensive overview of the main principles and concepts related to the liberalization of the power markets, the basic models of market design, how power sector is restructured and regulated under competition, and how electricity markets are organized. There is emphasis on the details of the “Target Model” for the European Internal Electricity Market, the role of Market Coupling, the fundamentals of Bilateral Transactions and Power Exchanges for trading, as well as the products traded and the trading strategies. The core objective is to understand the most important features of the European competitive power markets, the drivers for the price determination and risk management

Topics covered

• Fundamentals of Electricity Sector and Power Economics, Electricity as commodity.
• History of Liberalization and Restructuring, the 4 basic models of Market Design, how did electricity markets evolve.
• Organized and De-centralized Wholesale Markets, the role of Power Exchanges, OTC platforms, Bilateral Contracts, Fundamentals of price drivers, synergies with other Energy Commodities.
• The European target Model. Day-Ahead, Intraday and Forward Market. Market Coupling, Cross-border Trading and NEMO. What are the PXs and how they work., Clearing and Settlement, Shipping Agent, PCR Algorithm and MRC framework.
• Standard and OTC products traded, Physical and Financial, Lifecycle of a Trade.
• The view from the Trading Desk - Price discovery, Long vs Short, Credit Risk, Cash Management, Mark-to-Market, Value at Risk, Valuation, Contingent Agreements and Options. Arbitrage, Speculation and Hedging. Contango and Backwardated markets. Volatility aspects of the Forward Curve. Flexibility and Storage. The ETS factor and other environmental issues. Front, Middle and Back Office of a Trading organization.
• Structuring and Origination – Options – Hedging Strategies - Portfolio Management
• Risk Management Strategies of various Portfolios. Business Models. Asset owner, Supplier, IPP, RES, Aggregator, pure Trader
• The role of Intraday and Balancing Market in detail. Models of Balancing Markets, Price determination, imbalance settlement periods. Ancillary Services Market. Balancing Responsible Parties, Balancing Service Providers, and Balancing Perimeters. RES and Intermittency impact. Energy Storage, Flexibility and DSR.
• The Regulation of Competitive Electricity Markets. Unbundling, TPA and Network Tariffs. Rate of Return, Incentive Based, and Benchmarking Regulation. License, Behavioral and Structural Regulation. European Third Energy Package and new Clean Energy Package. Transparency and Reporting of Trading Activities

Learning Objectives

Upon completion of the Seminar, participants will be able to:

• Have a comprehensive understanding of why power sector has been de-regulated and open to competition and what are the main attributes of basic electricity market models.
• Have an in-depth understanding of how electricity is treated as commodity, how power markets are organized and what products are traded in there.
• Examine in detail the Power Trading operations, organization, products, ways and time-horizons of trading and the details of the European IEM.
• Understand the Regulatory Framework of European Electricity Markets.

Target Audience

Participation to the seminar is highly recommended for:

• Individuals starting a career in the energy industry
• Professionals working in the energy industry who want to further their knowledge of electricity markets
• Professionals working for companies that support those in the electricity market
• Academics and Consultants in the energy sector

Lecturers

Lead Lecturer

Mr. Nick Frydas
Chartered Power Systems Engineer and Energy Economist

Nick Frydas is a Chartered Power Systems Engineer and Energy Economist and has more than 30 years of professional experience in the power sector, with emphasis in the design and regulation of electricity markets, power system technologies, planning and operations, energy policy and power sector reforms. He is a recognized authority in the design of Power Markets, and his study as main Author, on “cross-border integration of Balancing Markets”, is quoted in the website of the EC and ENTSO-E as one of the basis for the European Regulation 2017/2195 establishing a guideline on “Electricity Balancing”. In his career, Nick has worked in operational and planning roles with power utilities (PPC and National Grid), as a Consultant, and has served as Director of Transmission and Regulatory Affairs with two major European Energy Trading firms based in London (EDF Trading and Merrill Lynch). At EDF-T (1999-2004) Nick helped put in place and execute successfully the “Single Commercial Function” between EDF and EDF-T. In the period 2004-2007 Nick was appointed by the United Nations as Chairman of the Energy Regulatory Office of Kosovo, and developed its energy institutional and regulatory framework, culminating in Kosovo becoming a signatory member of the Energy Community Treaty. He served for 3 years (2014-2016) in the Management Team of ENTSO-E in Brussels as Planning Manager. Nick is currently based in the Belgrade office of IFC, involved in upstream activities and institutional development to catalyse power projects in the South-eastern Europe and Central Asia regions. He is the Project Manager for several important infrastructure projects amongst which the establishment of the Albanian and Kosovo Power Exchange and the establishment of a real time Balancing Market in Albania, the development of a Battery Scheme in Eastern Europe to provide frequency response and a Gas to Power project in the Western Balkans. Mr. Frydas is also a visiting Lecturer and Member of the Advisory Board of the “Research Center for Energy Management”, at the “ECSP Europe Business School”.

Lecturer

Dr. Kostas Andriosopoulos
Professor in Finance & Energy Economics
at ESCP Europe Business School, London, UK

Professor Dr. Kostas Andriosopoulos is the Executive Director of the Research Centre for Energy Management at ESCP Europe Business School where he holds the position of full Professor in Finance and Energy Economics. He is also the Academic Director of the full-time (MEM) and the Executive (EMEM) Masters in Energy Management. He is the founder and former Chairman of the Hellenic Association for Energy Economics (a think-tank focusing on issues related to energy, the environment and the economy), he is a board member of the Global Gas Center of the World Energy Council as a Gas and LNG markets expert, and he also sits at the board of the International Association for Energy Economics as a Vice President for Publications. Since March 2019 he is the Chairman of the Energy Committee at the American- Hellenic Cham- ber of Commerce. Kostas holds a PhD in Finance (Cass Business School, City University London), where he has been the recipient of the prestigious Alexander S. Onassis Public Benefit Foundation’s scholarship. He also holds an MBA and MSc in Finance (Northeastern University, Boston, USA), and a bachelor’s degree in Production Engineering and Management (Technical University of Crete, Greece).

Registration Fee & Certification

295€

Registration closing date: 25th of October 2019
Early bird registration closing date: 22nd of October 2019

Participants of the Seminar will receive a certificate on behalf of HAEE which will contribute to their continuing professional development.

Please note that if any change occurs regarding the date of the Seminar or in case of cancellation, you will have the option of either full refund or you may automatically book your place for the new date of the Seminar or any other HAEE Seminar.