Profiting from high voltage and hot air
European electricity futures have yielded more than 30% for the second year - with practically zero correlation to financial instruments. The European Energy Exchange's Stefan Niessen explains how to get involved, and also how to trade carbon dioxide allowances
Oil trading has a long tradition in the investment community and there are tight links between oil's price, economic growth and fundamental indicators. In comparison to oil, trading in electricity derivatives has a rather short history in Continental Europe of around five years. In Europe's service economy, electricity prices are today practically decoupled from economic growth.
There has been a price increase of more than 80% in the electricity future with delivery in 2006 over the past three
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