Pan-European Management of Electricity Portfolios: Risks and Opportunities of Contract Bundling

FCN Working Paper No. 9/2010

31 Pages Posted: 1 Oct 2010

See all articles by Markus Gampert

Markus Gampert

RWTH Aachen University

Reinhard Madlener

RWTH Aachen University

Date Written: August 2010

Abstract

Today’s European utilities not only focus on electricity supply, but also offer exchange-traded “structured products” or portfolio management for unbundling financial and physical risk positions. Many utilities are only able to provide these services inside of their home markets, but in the globalized economy, the need for a centrally organized pan-European portfolio management has arisen. In this paper, we analyze the problems to be overcome for establishing a European-wide bundling of electricity contracts. For this purpose, a case study based on the business perspective of RWE Supply & Trading in Central and Eastern Europe is carried out.

Keywords: Portfolio management, Risk management, Electricity market liberalization

JEL Classification: L53, L94

Suggested Citation

Gampert, Markus and Madlener, Reinhard, Pan-European Management of Electricity Portfolios: Risks and Opportunities of Contract Bundling (August 2010). FCN Working Paper No. 9/2010. Available at SSRN: https://ssrn.com/abstract=1685126 or http://dx.doi.org/10.2139/ssrn.1685126

Markus Gampert

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

Reinhard Madlener (Contact Author)

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustraße 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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