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We consider the partial hedging of stochastic electricity load pattern with static forward strategies. We assume that the company under consideration maximizes the risk adjusted expected value of its electricity cash flows. First, we calculate an optimal hedge ratio and after that we use this hedge ratio to solve the optimal hedging time. Our results indicate, for instance that agents with high load volatility hedge later than agents that have low load volatility. Moreover, negative correlation between forwards and electricity load pattern postpones the hedging timing.

The physical nature of electricity generation and delivery creates special problems for the design of efficient markets, notably the need to manage delivery in real time and the volatile congestion and associated costs that result. Proposals for the operation of the deregulated electricity industry tend towards one of two paradigms: centralized and decentralized. Transmission congestion management can be implemented in the more centralized point‐to‐point approach, as in New York state, where derivative transmission congestion contracts (TCCs) are traded, or in the more decentralized flowgate‐based approach. While it is widely accepted that theoretically TCCs have attractive properties as hedging instruments against congestion cost uncertainty, whether efficient markets for them can be established in practice has been questioned. Based on an empirical analysis of publicly available data from years 2000 and 2001, it appears that New York TCCs provided market participants with a potentially effective hedge against volatile congestion rents. However, the prices paid for TCCs systematically diverged from the resulting congestion rents for distant locations and at high prices. The price paid for the hedge not being in line with the congestion rents, i.e., unreasonably high risk premiums are being paid, suggests an inefficient market. The low liquidity of TCC markets and the deviation of TCC feasibility requirements from actual energy flows are possible explanations.

This study aims to formulate a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market.

This exploratory study formulates a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market.

The results show a positive economic outcome for the creation of the Brazilian futures electricity market.

The main feature in this work is to summarize a framework to set up the Brazilian electricity futures market applying mechanism design, applicable in other countries. The features of the mechanism are the space of expected results (Z), the strategies to survey the environmental space (θ) and the mechanism design – messages space (M).

Energy commodities are characterised by rigid demand and high price volatility, linked to many variables such as climate factors, exchange rates, availability of resources. At the same time, the authorities often set prices, so wholesale energy companies need to create margins carefully by managing the procurement process and selecting appropriate tools to manage the risks associated with the volatility of energy prices. The purpose of this paper is to analyse and evaluate price and volume risks in the energy procurement process considering a “non-speculative” point of view, which is understudied in the literature review.

The paper adopts a quantitative approach to risk evaluation, based on accounting indicators, and applies it to a large Italian energy wholesale company.

A set of key risk indicators to measure price and volume risks is presented in the results, split into synthesis risk, unbalanced risks, modulation risks and risks derived from bilateral contracts. These indicators are applied to the case study, and each risk is prioritised and discussed.

This contribution is one of the first attempts to analyse energy procurement risks in a non-speculative approach. The proposed method allows: first, to evaluate and prioritise the three major types in the energy procurement process, second, to observe the trend of risk exposure, third, the performance measurement of the procurement process, and fourth, benchmarking activities if widely implemented in the energy sector.

This paper seeks to set out opportunities for the development of a UK‐focused feasibility and sizing model utilising linear programming.

Optimisation of the model is conducted using integer linear programming developed using Excel Solver.

When compared with comparable alternatives, the model is shown to be particularly useful as its functionality is embedded in resource intensive prime mover specifications obtained from seven real industrial cases.

The study acknowledges the limitation of utilising sizing data primarily obtained from secondary sources to develop the model.

The practical usefulness of this model is that it has been built using “real”, as opposed to simulated‐data. When compared with comparable alternatives, the model is shown to be articularly useful as its functionality is embedded in resource intensive prime mover specifications obtained from seven real industrial cases.

This paper aims to find optimal emission reduction investment strategies for the manufacturer and examine the effects of carbon cap-and-trade policy and uncertain low-carbon preferences on emission reduction investment strategies.

This paper studied a supply chain consisting of one manufacturer and one retailer, in which the manufacturer is responsible for emission reduction investment. The manufacturer has two emission reduction investment strategies: (1) invest in traditional emission reduction technologies only in the production process and (2) increase investment in smart supply chain technologies in the use process. Then, three different Stackelberg game models are developed to explore the benefits of the manufacturer in different cases. Finally, this paper coordinates between the manufacturer and the retailer by developing a revenue-sharing contract.

The manufacturer's optimal emission reduction strategy is dynamic. When consumers' low-carbon preferences are low and the government implements a carbon cap-and-trade policy, the manufacturer can obtain the highest profit by increasing the emission reduction investment in the use process. The carbon cap-and-trade policy can encourage the manufacturer to reduce emissions only when the initial carbon emission is low. The emission reduction, order quantity and the manufacturer's profit increase with the consumers' low-carbon preferences. And the manufacturer can adjust the emission reduction investment according to the emission reduction cost coefficient in two processes.

This paper considers the investment of emission reduction technologies in different processes and provides theoretical guidance for manufacturers to make a low-carbon transformation. Furthermore, the paper provides suggestions for governments to effectively implement carbon cap-and-trade policy.

This study aims to identify decarbonization pathways and energy mix scenarios of least global warming potential that address Egypt’s growing energy demand, while transitioning away from reliance on fossil fuel towards a more sustainable energy landscape.

The study utilized an integrated modelling approach, namely the Long-range Energy Alternatives Planning system, to simulate Egypt’s energy demand and supply from 2010 to 2050. Four alternative scenarios were examined. The reference scenario, RS1, replicates the energy demand and supply change patterns of the model’s baseline until 2050. The reference scenario, RS2, considers 5% yearly growth in energy demand alongside integrating nuclear technology into the generation mix. In addition to two renewables-promotion scenarios, RE1 and RE2, wherein renewables contribute 42 and 75% to the energy mix by 2030 and 2050, respectively.

Results revealed that greenhouse gas emissions are expected to peak in RS1 in 2050. Yet, RE2 demonstrates the lowest global warming potential. Energy generation costs are anticipated to be the highest in RS2 by 2050 and in RE2 between 2022 and 2030, reaching its lowermost point in RE2 by 2050. Moreover, natural gas is anticipated to contribute the largest share of energy generated in RS1 but the smallest share in RE2, wherein wind energy dominates energy production by 2050. Among all other scenarios, RE2 had the greatest potential to enable the achievement of net zero emissions in the long term.

The findings of this research have significant implications as they provide valuable data-driven insights into identifying mitigation scenarios that align best with Egypt’s economic development plans while also promoting sustainable energy planning. Moreover, the results hold important implications for energy policymaking in Egypt. Policymakers can utilize these insights to prioritize and channel investments towards renewable energy sources, energy efficiency measures and the adoption of clean technologies.

This study addresses a gap in the existing literature on Egypt’s energy landscape by introducing an integrated analysis that combines both energy demand and supply. Previous studies focused solely on demand or supply in isolation, overlooking the interconnected nature of these factors and the specific determinants of Egypt’s energy demand profile. Using a modelling approach, this study is the first in Egypt to comprehensively consider both aspects. By identifying key factors influencing Egypt’s energy demand until 2050, it provides valuable insights into the future energy landscape, evaluates economic costs, examines potential environmental impacts and presents empirical evidence on energy generation scenarios aligned with future demand and climatic factors.

This study aims to develop a price policy for fossil fuel consumption, as it is an effective instrument to manage the demand-side of energy economics.

This research estimates the demand elasticities of diesel, gasoline, fuel oil and kerosene by using static, dynamic and error-correction models in log-linear form.

The findings show that fossil fuel demand responds to price changes less than income changes, as fuel price is inelastic, but income is elastic. In that respect, the impact of price change decreases constantly with increasing energy price, followed by subsidy reform. Subsidy removal and price policy reformation is the UN recommendation for subsidizing countries, including Iran, to reduce fossil fuel consumption, whose intensity depends on the price elasticities.

As a result of this price policy, diesel, gasoline and liquefied petroleum gas prices should increase at least 1.8%–7.3%, 4.4%–6.4% and 7%–8.6%, respectively, and gradually within 2018–2030. The price policy improves all the pillars of sustainable development, including economy, environment and social (health). Overall, such a target can potentially save 3%–29% of diesel, 34%–56% of gasoline and 15%–20% of liquefied petroleum gas, as well as reduce 15%–40% of CO₂ emissions annually, and can save potentially more than 510,000 lives annually. Thus, the energy price policy can fundamentally improve sustainability.

The estimated elasticities outline the required prices to decrease the fossil fuels, according to the UN mitigation targets, as price policy recommendation.

This study aims to analyze the effect of energy consumption by energy source toward the price level of fossil fuels in Indonesia.

Using data from the Energy Institute and the World Development Indicator, this study applies the error correction model method to analyze the effect of energy consumption on price levels, both in the short and long run.

The results of this study show that the price of oil, which is one of the energy sources, has increased. In the long run, coal consumption increases oil prices, while geothermal consumption does the opposite. On the other hand, in the short term, only oil consumption increases oil prices. This study emphasizes the importance of renewable energy development, especially geothermal energy and hydroelectricity, for energy price stability in Indonesia.

To the best of the authors’ knowledge, this study is the first to examine the effect of Indonesian energy consumption on oil prices. In addition, this study breaks down the analysis of energy consumption by source, making it a valuable reference for the development of renewable energy in Indonesia.