At Emart 2017, Cyriel de Jong from KYOS held a presentation in the session on Power Price Drivers: “How can conventional generation survive in Europe?” He showed how fundamental models help to forecast future power prices and power plant profitability.
EU legislation will boost financial trading in sugar
As a result of new EU legislation, the minimum sugar price will disappear. This means that floating contracts will replace traditional fixed price contracts.
Cointegration between power and fuel prices stronger than ever
KYOS calculated that in the German market the speed of cointegration between power and fuel prices increased. This is contrary to the common belief that power prices become less dependent on fuel prices due to the renewables penetration.
Higher spot price volatility: improved outlook for gas storage value
In the last months the economic outlook for gas storage improved. The value of a gas storage depends largely on the volatility in the spot market, which increased substantially in the last months. When current market circumstances prolong, the outlook for gas storage improves significantly.
Energy Power Risk Management Journal: to Store or not to Store?
This article by Cyriel de Jong and Kasper Walet describes the optimal operation and valuation of natural gas storage based on a real option methodology.