This book presents an overview of the risks involved in modern electricity production, delivery and trading, including technical risk in production, transportation and delivery, operational risk for the system operators, market risks for traders, and political and other long term risks in strategic management. Using decision making under uncertainty as a methodological background, the book is divided into four parts, with Part I focusing on energy markets, particularly electricity markets. Topics include a nontechnical overview of energy markets and their main properties, basic price models for energy commodity prices, and modeling approaches for electricity price processes. Part II looks at optimal decisions in managing energy systems, including hydropower dispatch models, cutting plane algorithms and approximative dynamic programming; hydro-thermal production; renewable; stochastic investments and operational optimization models for natural gas transport; decision making in operating electricity networks; and investment in extending energy production systems. Part III explores pricing, including electricity swing options and the pricing of derivatives with volume control. Part IV looks at long-term and political risks, including energy systems under aspects of climate change, and catastrophic operational risks, particularly risks from terrorist attacks.

A comprehensive overview of trading and risk management in the energy markets Energy Trading and Risk Management provides a comprehensive overview of global energy markets from one of the foremost authorities on energy derivatives and quantitative finance. With an approachable writing style, Iris Mack breaks down the three primary applications for energy derivatives markets – Risk Management, Speculation, and Investment Portfolio Diversification – in a way that hedge fund traders, consultants, and energy market participants can apply in their day to day trading activities. Moving from the fundamentals of energy markets through simple and complex derivatives trading, hedging strategies, and industry-specific case studies, Dr. Mack walks readers through energy trading and risk management concepts at an instructive pace, supporting her explanations with real-world examples, illustrations, charts, and precise definitions of important and often-misunderstood terms. From stochastic pricing models for exotic derivatives, to modern portfolio theory (MPT), energy portfolio management (EPM), to case studies dealing specifically with risk management challenges unique to wind and hydro-electric power, the bookguides readers through the complex world of energy trading and risk management to help investors, executives, and energy professionals ensure profitability and optimal risk mitigation in every market climate. Energy Trading and Risk Management is a great resource to help grapple with the very interesting but oftentimes complex issues that arise in energy trading and risk management.

Energy is one of the world`s most challenging problems, and power systems are an important aspect of energy related issues. This handbook contains state-of-the-art contributions on power systems modeling and optimization. The book is separated into two volumes with six sections, which cover the most important areas of energy systems. The first volume covers the topics operations planning and expansion planning while the second volume focuses on transmission and distribution modeling, forecasting in energy, energy auctions and markets, as well as risk management. The contributions are authored by recognized specialists in their fields and consist in either state-of-the-art reviews or examinations of state-of-the-art developments. The articles are not purely theoretical, but instead also discuss specific applications in power systems.

Handbook of Multi-Commodity Markets and ProductsOver recent decades, the marketplace has seen an increasing integration, not only among different types of commodity markets such as energy, agricultural, and metals, but also with financial markets. This trend raises important questions about how to identify and analyse opportunities in and manage risks of commodity products. The Handbook of Multi-Commodity Markets and Products offers traders, commodity brokers, and other professionals a practical and comprehensive manual that covers market structure and functioning, as well as the practice of trading across a wide range of commodity markets and products. Written in non-technical language, this important resource includes the information needed to begin to master the complexities of and to operate successfully in today’s challenging and fluctuating commodity marketplace. Designed as a practical practitioner-orientated resource, the book includes a detailed overview of key markets – oil, coal, electricity, emissions, weather, industrial metals, freight, agricultural and foreign exchange – and contains a set of tools for analysing, pricing and managing risk for the individual markets. Market features and the main functioning rules of the markets in question are presented, along with the structure of basic financial products and standardised deals. A range of vital topics such as stochastic and econometric modelling, market structure analysis, contract engineering, as well as risk assessment and management are presented and discussed in detail with illustrative examples to commodity markets. The authors showcase how to structure and manage both simple and more complex multi-commodity deals. Addressing the issues of profit-making and risk management, the book reveals how to exploit pay-off profiles and trading strategies on a diversified set of commodity prices. In addition, the book explores how to price energy products and other commodities belonging to markets segmented across specific structural features. The Handbook of Multi-Commodity Markets and Products includes a wealth of proven methods and useful models that can be selected and developed in order to make appropriate estimations of the future evolution of prices and appropriate valuations of products. The authors additionally explore market risk issues and what measures of risk should be adopted for the purpose of accurately assessing exposure from multi-commodity portfolios. This vital resource offers the models, tools, strategies and general information commodity brokers and other professionals need to succeed in today’s highly competitive marketplace.

Safety and Reliability – Theory and Applications contains the contributions presented at the 27th European Safety and Reliability Conference (ESREL 2017, Portorož, Slovenia, June 18-22, 2017). The book covers a wide range of topics, including: • Accident and Incident modelling • Economic Analysis in Risk Management • Foundational Issues in Risk Assessment and Management • Human Factors and Human Reliability • Maintenance Modeling and Applications • Mathematical Methods in Reliability and Safety • Prognostics and System Health Management • Resilience Engineering • Risk Assessment • Risk Management • Simulation for Safety and Reliability Analysis • Structural Reliability • System Reliability, and • Uncertainty Analysis. Selected special sessions include contributions on: the Marie Skłodowska-Curie innovative training network in structural safety; risk approaches in insurance and fi nance sectors; dynamic reliability and probabilistic safety assessment; Bayesian and statistical methods, reliability data and testing; oganizational factors and safety culture; software reliability and safety; probabilistic methods applied to power systems; socio-technical-economic systems; advanced safety assessment methodologies: extended Probabilistic Safety Assessment; reliability; availability; maintainability and safety in railways: theory & practice; big data risk analysis and management, and model-based reliability and safety engineering. Safety and Reliability – Theory and Applications will be of interest to professionals and academics working in a wide range of industrial and governmental sectors including: Aeronautics and Aerospace, Automotive Engineering, Civil Engineering, Electrical and Electronic Engineering, Energy Production and Distribution, Environmental Engineering, Information Technology and Telecommunications, Critical Infrastructures, Insurance and Finance, Manufacturing, Marine Industry, Mechanical Engineering, Natural Hazards, Nuclear Engineering, Offshore Oil and Gas, Security and Protection, Transportation, and Policy Making.

Within the last fifty years the performance requirements for technical objects and systems were supplemented with: customer expectations (quality), abilities to prevent the loss of the object properties in operation time (reliability and maintainability), protection against the effects of undesirable events (safety and security) and the ability to

Switzerland's Energy Strategy 2050 requires energy efficiency to be substantially improved, the proportion of fossil fuels in the energy supply to be considerably reduced, and nuclear power to be phased out, while meeting highly ambitious climate protection targets. One of the core implications is the need for a massive increase of the use of renewable sources for electricity generation. In this context, the Swiss Federal Office of Energy (SFOE) estimates that by 2050 deep geothermal energy could contribute 4–5 TWh per year to electricity generation in Switzerland, which would be a substantial contribution to a projected annual power need of 60 TWh. Geothermal energy is attractive because of the very large scale of the resource, its expected relatively low CO2 emissions, and its reliable, all-day domestic availability. However, the future contribution of deep geothermal energy is subject to major uncertainties: How much of this resource can be exploited and at what economic cost? What are the environmental and risk-related externalities that the public must be willing to bear? How does its overall performance compare to competing energy resources? And will the regulatory framework and public acceptance be sufficient to allow geothermal energy to provide a significant contribution? By way of this major interdisciplinary study, already considered a work of reference, TA-SWISS provides answers to these questions in a comprehensive and balanced way, thereby supplying a sound basis for stakeholder decision-making.

ÔSome of us have spent our professional lives on energy and climate change but any new researcher or policy maker must find it daunting to even approach the subject. If so, this encyclopedic Handbook provides a wonderful and necessary introduction. It is creative and up to date, yet also takes the reader by the hand and introduces one topic after another while also providing much of the historical context that is so necessary to a deeper understanding.Õ Ð Thomas Sterner, Environmental Defense Fund This timely Handbook reviews many key issues in the economics of energy and climate change, raising new questions and offering solutions that might help to minimize the threat of energy-induced climate change. Constructed around the objectives of displaying some of the best of current thinking in the economics of energy and climate change, this groundbreaking volume brings together many of the worldÕs leading and most innovative minds in the field to cover issues related to: ¥ fossil fuel and electricity markets ¥ environment-related energy policy ¥ international climate agreements ¥ carbon mitigation policies ¥ low carbon behaviour, growth and governance. Serving as an indispensable guide to one of the fastest growing fields of economics, this invaluable resource will strongly appeal to students, academics and policy makers interested in energy, environmental and climate change issues.

This book offers an authoritative analysis of the state-of-the art in energy and climate research and policy. It starts by describing the current status of technologies that are expected to have an influence on the energy systems of the future. For an adequate evaluation, it presents the latest findings on the effects of energy supply and consumption as well as of the emissions on both the environment and people’s health. This is followed by an extensive discussion of the economic and social problems related to climate change, the need for energy transitions, and other issues that may require public investment and international agreements. The book reviews the problem of energy policy from a global perspective, providing readers with the technical, political, economic and ethical background needed to understand the current situation and work at better solutions for a sustainable, just and prospering world.