Energy Link Products

EL0 + ELNP1 + ELRisk Auckland 4th-6th September 2012

Fri, 18 May 2012 20:39:00 +1200

All three courses in the September session: Intro to the Electricity Market, Nodal Pricing, Hedging Electricity

EL0 + ELNP1 + ELRisk Auckland 8th-10th May 2012

Fri, 18 May 2012 20:39:00 +1200

All three courses in the May session: Intro to the Electricity Market, Nodal Pricing, Hedging Electricity

EL0 + ELNP1 + ELRisk Wellington 13th-15th November 2012

Fri, 18 May 2012 20:39:00 +1200

All three courses in the November session: Intro to the Electricity Market, Nodal Pricing, Hedging Electricity

EL0 + ELNP1 + ELRisk Wellington 17th-19th July 2012

Fri, 18 May 2012 20:39:00 +1200

All three courses in the July session: Intro to the Electricity Market, Nodal Pricing, Hedging Electricity

ELRisk: Hedging Electricity Auckland 6th September 2012

Fri, 18 May 2012 20:39:00 +1200

An Introduction to Risk Management in the Electricity Market

Code: ELRisk

Objective: To provide a practical introduction to the hedge market, and to techniques and methods for hedging price risk in electricity markets, with an emphasis on developing skills in working with and applying common forms of hedge contract.

Prerequisites: EL0, with ELNP1 also being useful background. Alternatively, familiarity with key elements of the electricity supply system including the Grid, metering and various types of generation. Some familiarity with the behaviour of prices from the spot market is also useful.

The course includes a number of rounds of our hedging simulation which simulates the process by which hedging decisions are made.

Introduction

What is a hedge?

Common supply arrangements – ‘contracts for differences’, ‘fixed price variable volume’

Volatility in the electricity spot market

Attitudes to risk, risk premiums

Hedging Electricity

Securities Markets Act

Contracts for differences

Swaps and options

Futures and swaptions

Financial transmission rights (FTRs)

The spot market’s ‘losses and constraints surplus’

Hedging Strategy

Location factor adjustments

Optimum generation with hedges in place

Using FTRs

Timing of hedge transactions

Building a “hedge book”

The forward curve

The role of forecasts

Pricing and valuing futures, swaps and options

Modelling hedge strategies

Stress testing

The Hedge Market

The hedge market in New Zealand

Hedge market liquidity

Miscellaneous

The ISDA agreement

Front, middle and back offices

Fair value and hedge accounting

NB: Course material may vary from the above on the day.

ELRisk: Hedging Electricity Wellington 15th November 2012

Fri, 18 May 2012 20:39:00 +1200

An Introduction to Risk Management in the Electricity Market

Code: ELRisk

The course includes a number of rounds of our hedging simulation which simulates the process by which hedging decisions are made.

Introduction

What is a hedge?

Common supply arrangements – ‘contracts for differences’, ‘fixed price variable volume’

Volatility in the electricity spot market

Attitudes to risk, risk premiums

Hedging Electricity

Securities Markets Act

Contracts for differences

Swaps and options

Futures and swaptions

Financial transmission rights (FTRs)

The spot market’s ‘losses and constraints surplus’

Hedging Strategy

Location factor adjustments

Optimum generation with hedges in place

Using FTRs

Timing of hedge transactions

Building a “hedge book”

The forward curve

The role of forecasts

Pricing and valuing futures, swaps and options

Modelling hedge strategies

Stress testing

The Hedge Market

The hedge market in New Zealand

Hedge market liquidity

Miscellaneous

The ISDA agreement

Front, middle and back offices

Fair value and hedge accounting

NB: Course material may vary from the above on the day.

ELRisk: Hedging Electricity Wellington 19th July 2012

Fri, 18 May 2012 20:39:00 +1200

An Introduction to Risk Management in the Electricity Market

Code: ELRisk

The course includes a number of rounds of our hedging simulation which simulates the process by which hedging decisions are made.

Introduction

What is a hedge?

Common supply arrangements – ‘contracts for differences’, ‘fixed price variable volume’

Volatility in the electricity spot market

Attitudes to risk, risk premiums

Hedging Electricity

Securities Markets Act

Contracts for differences

Swaps and options

Futures and swaptions

Financial transmission rights (FTRs)

The spot market’s ‘losses and constraints surplus’

Hedging Strategy

Location factor adjustments

Optimum generation with hedges in place

Using FTRs

Timing of hedge transactions

Building a “hedge book”

The forward curve

The role of forecasts

Pricing and valuing futures, swaps and options

Modelling hedge strategies

Stress testing

The Hedge Market

The hedge market in New Zealand

Hedge market liquidity

Miscellaneous

The ISDA agreement

Front, middle and back offices

Fair value and hedge accounting

NB: Course material may vary from the above on the day.

ELRisk: Hedging Electricity Auckland 10th May 2012

Fri, 18 May 2012 20:39:00 +1200

An Introduction to Risk Management in the Electricity Market

Code: ELRisk

The course includes a number of rounds of our hedging simulation which simulates the process by which hedging decisions are made.

Introduction

What is a hedge?

Common supply arrangements – ‘contracts for differences’, ‘fixed price variable volume’

Volatility in the electricity spot market

Attitudes to risk, risk premiums

Hedging Electricity

Securities Markets Act

Contracts for differences

Swaps and options

Futures and swaptions

Financial transmission rights (FTRs)

The spot market’s ‘losses and constraints surplus’

Hedging Strategy

Location factor adjustments

Optimum generation with hedges in place

Using FTRs

Timing of hedge transactions

Building a “hedge book”

The forward curve

The role of forecasts

Pricing and valuing futures, swaps and options

Modelling hedge strategies

Stress testing

The Hedge Market

The hedge market in New Zealand

Hedge market liquidity

Miscellaneous

The ISDA agreement

Front, middle and back offices

Fair value and hedge accounting

NB: Course material may vary from the above on the day.

ELNP1: Nodal Pricing of Electricity Auckland 9th May 2012

Fri, 18 May 2012 20:39:00 +1200

Code: ELNP1

Objective: To provide a working knowledge of nodal dispatch and pricing as it applies to the New Zealand electricity spot market, including simple formulae to apply and the ability to recognise the cause of certain nodal pricing effects.

Prerequisites: EL0. Alternatively, some familiarity with the electricity spot market including an overview knowledge of the SPD and RMT models, and with the processes and timing of publication of final, and other prices.

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course. Simple examples using a few nodes at most are used to assist learning. Course material may also vary from the above on the day.

ELNP1: Nodal Pricing of Electricity Auckland 5th September 2012

Fri, 18 May 2012 20:39:00 +1200

Code: ELNP1

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course. Simple examples using a few nodes at most are used to assist learning. Course material may also vary from the above on the day.

ELNP1: Nodal Pricing of Electricity Wellington 14th November 2012

Fri, 18 May 2012 20:39:00 +1200

Code: ELNP1

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course. Simple examples using a few nodes at most are used to assist learning. Course material may also vary from the above on the day.

ELNP1: Nodal Pricing of Electricity Wellington 18th July 2012

Fri, 18 May 2012 20:39:00 +1200

Code: ELNP1

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course. Simple examples using a few nodes at most are used to assist learning. Course material may also vary from the above on the day.

EL0: Introduction to the Electricity Market Wellington 13th November 2012

Fri, 18 May 2012 20:39:00 +1200

Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth - history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB: Course material may vary from the above on the day.

EL0: Introduction to the Electricity Market Auckland 4th September 2012

Fri, 18 May 2012 20:39:00 +1200

Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth - history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB: Course material may vary from the above on the day.

EL0: Introduction to the Electricity Market Wellington 17th July 2012

Fri, 18 May 2012 20:39:00 +1200

Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth - history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB: Course material may vary from the above on the day.

EL0: Introduction to the Electricity Market Wellington 13th March 2012

Fri, 18 May 2012 20:39:00 +1200

Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth - history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB: Course material may vary from the above on the day.

EL0 + ELNP1 + ELRisk Wellington 13th-15th March 2012

Fri, 18 May 2012 20:39:00 +1200

All three courses in the March session: Intro to the Electricity Market, Nodal Pricing, Hedging Electricity

EL0: Introduction to the Electricity Market Auckland 8th May 2012

Fri, 18 May 2012 20:39:00 +1200

Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth - history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB: Course material may vary from the above on the day.

ELNP1: Nodal Pricing of Electricity Wellington 14th March 2012

Fri, 18 May 2012 20:39:00 +1200

Code: ELNP1

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course. Simple examples using a few nodes at most are used to assist learning. Course material may also vary from the above on the day.

ELRisk: Hedging Electricity Wellington 15th March 2012

Fri, 18 May 2012 20:39:00 +1200

An Introduction to Risk Management in the Electricity Market

Code: ELRisk

The course includes a number of rounds of our hedging simulation which simulates the process by which hedging decisions are made.

Introduction

What is a hedge?

Common supply arrangements – ‘contracts for differences’, ‘fixed price variable volume’

Volatility in the electricity spot market

Attitudes to risk, risk premiums

Hedging Electricity

Securities Markets Act

Contracts for differences

Swaps and options

Futures and swaptions

Financial transmission rights (FTRs)

The spot market’s ‘losses and constraints surplus’

Hedging Strategy

Location factor adjustments

Optimum generation with hedges in place

Using FTRs

Timing of hedge transactions

Building a “hedge book”

The forward curve

The role of forecasts

Pricing and valuing futures, swaps and options

Modelling hedge strategies

Stress testing

The Hedge Market

The hedge market in New Zealand

Hedge market liquidity

Miscellaneous

The ISDA agreement

Front, middle and back offices

Fair value and hedge accounting

NB: Course material may vary from the above on the day.