This work illustrates how energy corporations can implement new methodologies in the world's liberalising power markets. It presents details on how to build a coherent strategy for different kinds of power business: from physical asset management to trading desks and whole-company risk management. It analyses key strategic issues such as European transmission development, relationships between power feedstock markets, and optimization of plant despatch.
Section 1: Business Direction and The Risk / Reward Equation1. Competition in electricity Markets: A Financial Perspective (Tony White of Dresdner Kleinwort Benson)2. Defining Power Corporation: Mapping Risk / Reward to Shareholder Expectations (Chris Harris of National Power)3. Adapting Risk Management Strategies to Enterprise Risk Tolerances (Grant Thain and Mark T. Williams of Citizens Power LLC)Section 2: Optimising Generation Assets4. Real Options Theory and the Valuation of Generating Assets: A Discussion for Senior Managers (Blake Johnson, Venu Nagali and Bradley R. Romine of Stanford University and Options, Markets and Analytics, Inc)5. Power Asset Valuation: Real Options, Ancillary Services and Environment Risks (Peter Griffes, Michael Hsu and Edward Kahn of Analysis Group / Economics Inc.)6. Real Options and the Valuation of Generation Assets: An Australian National Electricity Market Example (Joseph K. Winsen of University of Newcastle, Australia)7. Competitor Behavious and Optimal Dispatch of Generators: Modelling Techniques for Decision-Making (Juan J. Alba, Irene Otero-Novas, Claudia Meseguer and Carlos Batlle of Endesa and Instituto de Investigacion Technologica, Universitdad Pontifica Comillas8. Weather Derivatives and the New Power Markets (Don Ellithorpe and Scott Putnam of Koch Industries)Section 3: Fuel Procurement and Infrastructure Strategies9. Power Generation in a Deregulated Market: Implications for Fuel Choice Behaviour in Europe (Patrik SOderholm of Lulea University of Technology, Sweden)10. The Missing Piece of the Energy Jigsaw: Approaches to Modelling and Managing Coal Price Risk (Jay L. Gottlieb of New York Mercantile Exchange)11. Power Supply Infrastructure and Corporate Strategy: Developments in the Liberalising European Market (Debra Johnson of University of Lincolnshire and Humberside)Section 4: Managing Social, Environmental and Legal Obligations12. Managing Social and Environmental Obligations in Liberalised Markets (Mark Davis and Eivind Magnus of the ECON Centre for Economic Analysis)13. Legal Issues and Strategy Development: The New European Power Markets (Andrew Grenville, Bleddyn Phillips and Fiona Smith of Clifford Chance