Energy Markets Assignment | Online Assignment

Energy Markets – Final exam
Word limit: 250-600 words per essay question
• The exam is due by 23:59 CET on Sunday
• Return your exams to veysiakman.ozel@sciencespo.fr and veysiakman.ozel.scpo@analyse.urkund.com in Word format
• Please indicate the questions of your choice at the beginning of your paper
• Your email subject line and the Word file name should be in the following format: Final_Last Name_First Name
A guide to how you will be graded:
• Content = 50% (A good paper shows a thorough understanding of the course material and the exam question. You will be judged on the relevance of the information you use and your ability to explain it)
• Argumentation = 30% (This concerns your ability to provide insight, analyze the course material and relevant issues, presenting a coherent viewpoint)
• Structure and word limit = 20% (A good paper would be clear, concise and well-organized)
ANSWER TWO OF THE FOLLOWING QUESTIONS
Electricity markets
1. What is your opinion of the impact of COVID-19 on energy markets? What could happen in the short (<1 year) and medium term (2-5 years)? You may choose ONE commodity: crude oil, natural gas, electricity or carbon.
2. What type of market participants trade the EU ETS carbon market? Explain why and what strategies these participants would employ for trading in the carbon market?
3. What is the role of the Financial Transmission Rights (FTR) market? How do these markets operate in both a) the primary market b) secondary market? How does the market value FTR’s?
4. Discuss and present, in detail, a hedging strategy for a gas fired power plant located in a region (you can assume liquid trading spot and futures markets are available)? What are the pros and cons to your suggested hedge strategy? Compare and contrast this gas plant hedging strategy with a possible strategy for a large offshore wind farm also located in the same region.