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Course Code: EEC 1040
337 Course Visits
Electricity Market and Energy Economic and Strategic Planning
Course Sector:
Electrical Engineering
Course Dates and Locations
Choose a date and location to book your seat
No.
Date
Days
Location
Fees
Enrollment
01
5 Days
Salalah, Oman $4,250
02
5 Days
Muscat, Oman $4,250
03
5 Days
Dammam, KSA $4,250
Introduction
Training course introducion / brief
In economic terms, Electricity (both Power
and Energy) is a commodity capable of being bought, sold and traded. An
Electricity Market is a system for effecting purchases, through bids to buy;
sales, through offers to sell; and short-term trades, generally in the form of
financial or obligation swaps. Bids and offers use supply and demand principles
to set the price. Long-term trades are contracts similar to power purchase
agreements and generally considered private bi-lateral transactions between
counterparties.
Wholesale transactions (bids and offers) in Electricity are typically cleared and settled by the market operator or a special-purpose independent entity charged exclusively with that function. Market operators do not clear trades but often require knowledge of the trade in order to maintain generation and load balance.
The commodities within an
electric market generally consist of two types: power and energy. Power is the
metered net electrical Electrical transfer rate
Transfer rate at any given moment and is measured in megawatts (MW). Energy is electricity that flows through a metered point for a given period and is measured in megawatt hours (MWh).
The market mechanisms introduced a new discipline to be used by power systems professionals. This course explores the market economics and the associated exposure that can be mitigated with financial instruments. The course provides a good understanding of the market structures, the power and energy exchanges and the hedging instruments that become part of the engineering tool box. Special attention is given to the identification of Risk Exposure and Mitigation of Risk.
Course Objectives
At the end of the training course, participants will be able to
- The full understanding of Power Markets requires that any Stakeholder (Government, Private Investors, Planners, Regulators, Consumers and Operators), be proficient in three basic areas:
- Understanding the Planning and Operating Process
- Understanding the Financial and Economic issues
- Ability to deal with the risks associated with Market Uncertainties.
- Also, after the key Lectures on Risk Assessment and Management, the Participants are engaged in the various features of Market Case Studies culminating in a full Knowledge. And Skills related to main subject.
Course Audience
Who is this course for, and can benefit the most
- Circuits Engineer
- Design Engineer
- Electrical Controls Engineer
- Electrical Design Engineer
- Electrical Engineer
- Electrical Project Engineer
- Electronics-research engineer
- Instrumentation and Electrical (I&E) Reliability Engineer
- Power Systems Engineer
- Project Engineer
- Test Engineer
- illuminating engineer
- Technician, semiconductor development
- Power-distribution engineer
- Controls design engineer
Course Outline
The course aims and learning outcomes
Module (01) Risk Management
- 1.1 Risk Framework/Metrics
- 1.2 Examples of Regulatory Risks
- 1.3 Types of Instruments
- 1.3.1 Futures (NYMEX, Amsterdam Exchange)
- 1.3.2 Strategies: Vanilla and Exotic Options
- 1.4 Design of Contracts (ISDA, EEI, OTC, NYMEX)
- 1.5 Typical Trades - Futures, SWAPS, OPTIONS
- 1.5.1 Choice of Hedges
- 1.5.2 Real life Examples
- 1.5.3 Types of Trades - Useful to the Producer
- 1.5.4 Types of Trades - Useful to the Load
- 1.6 Advantage/Disadvantage of different Tools
Module (02) Lessons Learned from other Jurisdictions
- 2.1 North America Market (FERC)
- 2.2 FERC white paper on Transmission Policy
- 2.3 Challenges of Scale, Scope and Timing
Module (03) Elements of Risks (Strategic Issues)
- 3.1 Basel Committee for Banking Supervision
- 3.2 Market Locational Risk
- 3.3 Operational Risk
- 3.4 Credit Risk/ Liquidity Risk
- 3.5 Physical Risk of Generating Assets
- 3.6 Legal and Regulatory Risks
- 3.7 Trading Controls and Best Practices
- 3.8 Independent Risk Management
- 3.9 Front to Back Office Case Studies:
- 3.10 Enron’s Price Maximization
- 3.11 Quantitative / Qualitative Risks
Module (04) Concepts of Derivatives Part I
- 4.1 Forward Contracts: Contango, Backwardation
- 4.2 Futures Contracts
- 4.3 Contract Standardization
- 4.4 Energy Futures contracts
- 4.5 Arbitrage Pricing Theory
- 4.6 Convenience Yield
- 4.7 Swaps
Module (05) Concepts of Derivatives Part
II
- 5.1 Option Contracts
- 5.2 Strategies Involving Options
- 5.3 Basic Options Strategies
- 5.4 Call-Put Parity
- 5.5 Daily Options, Monthly, Spreads
- 5.6 Spark Options on 2 Commodities
- 5.7 Spark Options on 3 Commodities
- 5.8 Volumetric or Swing Options
- 5.9 Real Options: Power and Physical Constraints
- 6.1 Valuation of Option Strategies
- 6.2 Closed Form Solutions (Black Scholes)
- 6.3 The Binomial Tree Approach
- 6.4 Monte Carlo Valuation of Options
- 6.5 Examples of Hedging
Module (07) Quantitative Financial Models
- 7.1 Quantitative Financial Models
- 7.2 Stochastic Factors: Production and Demand
- 7.3 Mean Reversion Model, Jumps
- 8.1 Day Ahead Market
- 8.2 Unconstrained Price
- 8.3 Constrained Price
- 8.4 Bidding Strategy
- 8.5 Locational Marginal Price
- 8.6 Energy Price Cap
Module (09) Portfolio Analysis
- 9.1 Demand & Supply
- 9.2 Demand & Supply Equilibrium Price
- 9.3 Value AT Risk
- 9.4 Strategic Planning
- 9.4.1 Multiyear Plan
- 9,4.2 Multi Area Forecasting
- 9.4.3 Budget
- 9.4.4 Forward Prices
- 10.1 Transmission Pricing
- 10.2 Congestion Management
- 10.3 Auction
- Weather Risk
- Description of Weather Contracts
- Weather Risk Management Instruments
- Market Economics (Best Practices)
- Canada , USA & Europe
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Boost certificate of completion
BOOST's Professional Attendance Certificate “BPAC” is always given to the delegates after completing the training course, and depends on their attendance of the program at a rate of no less than 80%, besides their active participation and engagement during the program sessions.
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COURSE METHODOLOGY
Our Training programs are implemented by combining the participants' academic knowledge and practical practice (30% theoretical / 70% practical activities).
At The end of the training program, Participants are involved in practical workshop to show their skills in applying what they were trained for. A detailed report is submitted to each participant and the training department in the organization on the results of the participant's performance and the return on training. Our programs focus on exercises, case studies, and individual and group presentations.
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