Summary: Navigating the Transforming Landscape of Global Electricity Markets

The four-day exploration of global electricity markets begins with an overview of the ongoing energy transition. It discusses the dynamics of power generating markets, the shift from centralised to decentralised systems, and the evolving role of renewables. The significance of international agreements, subsidies, and power purchase agreements in influencing market behaviour is emphasised. Flexibility in electricity markets through storage and demand response is examined, along with the organisation, current status, and future developments in power markets.

Day two focuses on power price dynamics, addressing non-storability challenges and exploring drivers such as supply, demand, weather, and more. Mean reversion, volatility, and seasonality are explained, along with the impact of correlations and strategies for handling negative prices. Fundamentals of power market design are outlined, covering real-time wholesale markets, day-ahead operations, ancillary services, capacity markets, and the roles of ISO and TSO. The importance of infrastructure investment and the rules governing fair prices are also highlighted.

Day three delves into physical and financial trading, distinguishing between spot and forward trading, and comparing exchange-based and OTC trading. It explores the generation stack, operational decisions of power plants, forward curves for electricity and CO2, and different timeframes of trading, including day-ahead and intraday trading. Balancing the electricity market and the dynamics of forwards trading are discussed, accompanied by a case study on bidding strategy development and effective portfolio management in power trading.

On the final day, the focus shifts to evaluating the electricity value chain, including the interconnected stages from fuel sources to retail supply. The diverse portfolio of contracts involved in electricity trading, sources of risk, and financial trading strategies are explored. Different trading strategies—hedging, arbitrage, and speculation—are discussed, along with an exploration of derivatives like forwards, futures, swaps, and options.

The conclusion underscores the state of flux in global electricity markets, driven by the imperative of energy transition. Understanding market nuances, price dynamics, and effective trading strategies is deemed essential for navigating this intricate landscape. The frequently asked questions touch upon factors contributing to power price volatility, the impact of subsidies on renewable energy, the role of ancillary services in grid stability, effective risk management in electricity trading, and key considerations in developing a bidding strategy for the power day-ahead market.

• Understand the driving forces behind the global transition to sustainable energy sources.
• Recognise the role of renewables and the impact of international agreements like the Paris Agreement and COP Glasgow.

• Gain insights into the current state and anticipated developments in global power markets.
• Understand the organisational structure, key features, and regulatory issues influencing power markets.
• Identify major players and comprehend their roles in shaping market dynamics.

• Understand the non-storability challenge in power markets.
• Analyse the drivers of power prices, including supply and demand dynamics, weather conditions, and other factors.
• Grasp concepts such as mean reversion, volatility, seasonality, and correlations.

• Familiarise oneself with real-time and day-ahead wholesale markets.
• Understand the significance of ancillary services, capacity markets, and the role of ISO and TSO.
• Recognise the importance of infrastructure investment in shaping power market futures.

• Distinguish between spot and forward trading of electricity.
• Compare and understand exchange-based and over-the-counter (OTC) trading.
• Explore different timeframes of trading, including day-ahead, intraday, balancing, and forwards.
• Engage in a spot trading case study to develop effective bidding strategies.

• Understand the electricity value chain, from fuels to retail, and the portfolio of contracts involved.
• Identify and analyse sources of risk in electricity markets, including market, credit, operational, legal, regulatory, business, strategic, and reputation risks.

• Grasp the role of trading in profit opportunities and risk sharing.
• Explore different trading strategies, including hedging, arbitrage, and speculation.
• Understand the four main types of derivatives in electricity trading.

• Develop practical skills through a case study on bidding strategy development for the power day-ahead market.
• Explore effective portfolio management strategies in power trading.

• Professionals working in the energy sector, including those involved in power generation, distribution, and trading.
• Individuals seeking to enhance their understanding of the evolving energy transition and its impact on global electricity markets.

• Government officials and policymakers involved in energy and environmental regulations.
• Regulators looking to gain insights into the intricacies of electricity markets to inform effective policymaking.

• Analysts and professionals in the financial sector interested in understanding the financial intricacies of power markets.
• Investors seeking to make informed decisions in the dynamic and evolving energy investment landscape.

• Individuals passionate about renewable energy and its role in reshaping global electricity markets.
• Professionals involved in the renewable energy sector looking to deepen their knowledge of market dynamics.

• Traders and risk management professionals operating in electricity markets.
• Individuals looking to enhance their trading strategies and risk management practices in the context of the global energy transition.

• Students pursuing studies in energy, economics, or related fields who want a comprehensive understanding of global electricity markets.
• Academics and researchers seeking to stay updated on the latest developments in the energy sector.

• Energy consultants and advisors providing strategic guidance to organizations in the energy sector.
• Professionals offering expertise on market trends, regulatory issues, and investment strategies.

• Individuals passionate about sustainability and environmental issues.
• Advocates seeking to understand the role of electricity markets in achieving sustainability goals.