Hi all, I've started recently as a power trader and was wondering if you could recommend some resources (or write any comments) on various trading strategies possible in the electricity market.
I tried searching on the forum here and there are few people with experience in energy trading, so hopefully I'll get some answers (I found several discussions on power, but nothing detailed, except some info on DA vs RT and FTRs).
Coming from the "traditional" financial markets background, where there are multiple bible-sized books available on every detail, I was quite surprised to not find much on power.
I am familiar with the fundamentals of the business after rotating through the asset operations teams, but I am looking more for some inspiration on developing speculative trading strategies.
For example, what are the major players doing? Directional bets on fundamentals, i.e. weather / capacity outages? Is that then only matter of having better forecasting models than other players?
Spreads? Options? Physical / financial transmission rights? Or some more complex stat arb? And what about quant trading firms? I have head only of DC Energy and their FTRs trading, but not much else.
It would be great to get some overview of what is possible, or on the other hand, what is not worth wasting time looking at as it has been found to not be worthwhile.
Any helpful answers would be appreciated. Thanks
So far I've read only Energy Trading and Investing book by Edwards (good overview, but quite basic) and just ordered The Handbook of Energy Trading by Fiorenzani. Then some of the usual trainings by exchanges / ISOs etc. and some academic papers