TY - THES

T1 - Proposal for a CTRM Contract Capture Module in Electricity Trading

AU - Brugger, Otto

N1 - no embargo

PY - 2023

Y1 - 2023

N2 - Since electricity cannot be stored in large quantities yet, it must be produced according to demand. In this regard, trading differs significantly from other commodities. By scheduling weekly, monthly or even yearly consumption in advance, wholesale market participants try to mitigate their risk against volatile spot prices. Standardized and even more so long term bilateral agreements, are used to hedge against this risk. The goal of this thesis is to propose a full set of requirements to capture those trades within an already approved CTRM software environment. These requirements aim to create a modular extension to fully capture bilateral trades, within the EU, by using the EFET general agreement as the underlying contract. To cover all contractual terms including the election sheet and individual contracts, system requirement analysis has been chosen as the preferred methodological procedure. Based on requirement templates, the system requirement specifications were carefully documented using natural language. Because this is the company's first exposure to electricity as a commodity, the basis of electricity trading, its wholesale market structure, pricing and hedging possibilities have been examined. This should provide a robust theoretical basis for further development of this version of the module.

AB - Since electricity cannot be stored in large quantities yet, it must be produced according to demand. In this regard, trading differs significantly from other commodities. By scheduling weekly, monthly or even yearly consumption in advance, wholesale market participants try to mitigate their risk against volatile spot prices. Standardized and even more so long term bilateral agreements, are used to hedge against this risk. The goal of this thesis is to propose a full set of requirements to capture those trades within an already approved CTRM software environment. These requirements aim to create a modular extension to fully capture bilateral trades, within the EU, by using the EFET general agreement as the underlying contract. To cover all contractual terms including the election sheet and individual contracts, system requirement analysis has been chosen as the preferred methodological procedure. Based on requirement templates, the system requirement specifications were carefully documented using natural language. Because this is the company's first exposure to electricity as a commodity, the basis of electricity trading, its wholesale market structure, pricing and hedging possibilities have been examined. This should provide a robust theoretical basis for further development of this version of the module.

KW - Rohstoffhandel

KW - Stromhandel

KW - Risikomanagement

KW - Strommärkte

KW - Bilaterale Verträge

KW - EFET Rahmenvertrag

KW - CTRM

KW - Commodity Trading

KW - Electricity Trading

KW - Risk Management

KW - Electricity Markets

KW - Bilateral Contracts

KW - EFET Genera Agreement

KW - CTRM

M3 - Master's Thesis

ER -