Analytical Tools

Vincent Kaminski

This chapter will cover a number of the analytical tools and data sources a trader or analyst can use to monitor developments in the electricity markets and make trading decisions. Some of the tools, such as the complex software packages used for the analysis of integrated generation transmission systems are beyond the scope of the book. Using such systems requires dedicated staff with a strong background in electrical engineering and a good understanding of available data sources and their potential shortcomings. Many of these packages go back to the models used by regulated utilities in their resource planning, and were overhauled to incorporate features of the deregulated electricity markets, including the potential for strategic bidding. These modifications have sometimes been less than fully successful – but this should not be taken as a criticism. It is rather as recognition of what is state of the art in this field and the difficulty of modelling the power markets. We are dealing with very complex and evolving systems, and it will take time before we can accumulate enough experience to translate it into stylised representations of reality using mathematical tools.

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