High-frequency trading on electricity markets

The high penetration of wind based electricity production has a notable effect on the electricity market prices in Germany. It is important to properly integrate the high level of wind generation into the liberalised electricity markets in order to make them more competitive and representing the act...

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Detalles Bibliográficos
Autor: Baldauf, Ákos
Tipo de recurso: tesis de maestría
Fecha de publicación:2018
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/117515
Acceso en línea:https://hdl.handle.net/2117/117515
Access Level:acceso abierto
Palabra clave:Electric utilities -- Germany
Empreses elèctriques -- Alemanya
Àrees temàtiques de la UPC::Energies
Àrees temàtiques de la UPC::Economia i organització d'empreses
Descripción
Sumario:The high penetration of wind based electricity production has a notable effect on the electricity market prices in Germany. It is important to properly integrate the high level of wind generation into the liberalised electricity markets in order to make them more competitive and representing the actual costs. Two markets, the German EPEX Day-ahead Spot and the Intraday Continuous can hold potential arbitrages between them. This thesis is aiming to investigate nature of the listed markets and their trading opportunities. Firstly, a testing method is introduced and applied on the markets to justify the search of arbitrage. Secondly, the correlation of the actual wind generation and forecasts regarding to the market pricing is investigated. Thirdly, the intraday continuous market’s order book is analysed in regards of trading potentials. Lastly, strategy development steps are introduced in order to create profitable trading strategies between the day-ahead and intraday continuous markets. The goal of this thesis is to investigate and provide a guide for the creation of such trading algorithms. Hopefully, this thesis can provide a good start, justification and viewpoint for further projects on this topic.