Electricity trading with derivative instruments: Speculation, hedging, or speculative hedging?
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Autor:innen
Autor:in (Körperschaft)
Publikationsdatum
2024
Typ der Arbeit
Studiengang
Sammlung
Typ
04A - Beitrag Sammelband
Herausgeber:innen
Herausgeber:in (Körperschaft)
Betreuer:in
Übergeordnetes Werk
Finance in crises. Financial management under uncertainty
Themenheft
DOI der Originalpublikation
Link
Reihe / Serie
Reihennummer
Jahrgang / Band
Ausgabe / Nummer
Seiten / Dauer
159-175
Patentnummer
Verlag / Herausgebende Institution
Springer
Verlagsort / Veranstaltungsort
Cham
Auflage
Version
Programmiersprache
Abtretungsempfänger:in
Praxispartner:in/Auftraggeber:in
Zusammenfassung
The physical nature of electricity makes it difficult to store, which means that current demand must always match current production. This requires both flexible and internationally interconnected generation capacity and appropriate hedging strategies. Electricity is typically traded ‘forward’, i.e., future energy volumes and prices are hedged in advance with derivative instruments to minimize price risks. In times of crisis, when energy prices can be highly volatile, such instruments can also be used for speculative purposes. However, hedging and speculative positions can trigger margin calls on derivatives exchanges or increased collateral requirements in the over-the-counter (OTC) market. The causes, interrelationships and possible consequences of such margin calls on the financial situation of buyers and sellers of electricity (e.g., on balance sheet liquidity) are discussed.
Paradoxically, the use of hedging instruments to protect against price volatility, together with prudential accounting standards, has led to financial problems for many electricity producers during the market turmoil of 2022, and to governmental bail outs. Whether the problems of large energy companies in Switzerland are due solely to hedging motives or to speculative proprietary trading is difficult for outsiders to judge.
Schlagwörter
Fachgebiet (DDC)
Veranstaltung
Startdatum der Ausstellung
Enddatum der Ausstellung
Startdatum der Konferenz
Enddatum der Konferenz
Datum der letzten Prüfung
ISBN
978-3-031-48071-3
978-3-031-48070-6
978-3-031-48070-6
ISSN
Sprache
Englisch
Während FHNW Zugehörigkeit erstellt
Ja
Zukunftsfelder FHNW
Publikationsstatus
Veröffentlicht
Begutachtung
Fachlektorat/Editorial Review
Open Access-Status
Closed
Lizenz
Zitation
Härri, M. (2024). Electricity trading with derivative instruments: Speculation, hedging, or speculative hedging? In T. Hüttche (Ed.), Finance in crises. Financial management under uncertainty (pp. 159–175). Springer. https://doi.org/10.1007/978-3-031-48071-3_11