Enerji Programları
K03.Gas-to-Electricity Arbitrage & How to Maximize the Profitability of Electric Generation Assets.
In today's difficult environment, understanding profitable cross-commodity transaction structures and how to capitalize on the optionality of electric generating assets has never been more important.
This one-day program is for those seeking a better understanding of spark spread economics; heat-rate-linked power transactions; the inherent optionality of coal and gas-fired generating plants; gas-to-electricity arbitrage (with and without generating assets); and the proper management of cross-commodity price risk.
Understand these critical concepts:
- What the spark spread is, and how it is traded; what tolling arrangements are; and how to correctly convert fuel and electricity prices and quantities into equivalent terms.
- How to structure profitable heat-rate-linked transactions without exposure to commodity price risk, and how these transactions can increase the economic return on your physical generation assets.
- What btu swaps, heat rate swaps and heat rate options are, and why a spark call option is equivalent to physical generation.
- Why coal-fired and gas-fired generating units are valuable options in disguise.
- How to use forward energy contracts and options to hedge electric generating assets (while keeping the upside potential associated with the plant's optionality), and how to use these assets to lock in option-based arbitrage margins.
Who should attend this seminar?
Electric generators, utilities, municipals, and energy marketers; energy and electric power executives; plant operators, engineers; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; and corporate planners.
Seminar Outline:
Morning: The seminar begins with a discussion of operational and economic heat-rates, spark spreads, MIHRs and tolling arrangements. The seminar then moves on to work through four examples of heat rate linked power transactions; illustrates how to engage in natural gas-to-electricity arbitrage without access to generation assets; and shows how heat rate swaps and heat rate options can be used to structure transactions.
Afternoon: After lunch, the seminar addresses electric generating assets as call options on the spark spread and shows how to create synthetic option positions. The seminar then works through detailed examples showing: 1) how to hedge cross-commodity price risk for an electric generating unit while keeping the upside potential associated with its optionality; 2) how to use physical generation assets to back the sale of a spark call; and 3) how physical generation assets can be used to arbitrage volatility between the natural gas, coal and electric power markets. The seminar closes with a brief discussion of the value of new electric generation plants.
