Marlin Software & Training logo in co-operation with NCE English

Home – Software – UK & Holland – UK Forward Markets

UK Forward Markets Simulation

Originally developed in conjunction with Drax Power Ltd, this simulation demonstrates the realities that UK Coal generation faces under the EU ETS.

General Information Example Workshop Technical Information Flexibility Options

Key Learning Points:

  1. EU ETS
  2. Hedging
  3. Credit
  4. NOx and SOx emissions
  5. Speculation
  6. Stock Management
  7. Market Message interpretation

Download simulation flyer

This detailed simulation gives a detailed insight into long term trading. The simulation focuses on Coal generation and the challenges in the current market place.

The simulation focuses on a one year period. Users must interpret market messages while they look to hedge their asset in the Power, Coal and CO2 markets.

Credit limits must be adhered to while trading and the user must avoid breaching. It is possible for the user to stop trading with counterparties and also possible for counterparties to stop trading with the user.

The simulation has been written flexibly to allow it to be run reflecting current climate or alternatively to reflect future (proposed) climates.

Summary Screen showing dark spread information as well as all stock, emission, credit and energy positions.

The Power Trading Screen where users can trade peak or baseload products. Counterparty credit information is also detailed to allow user to make informed trading decisions.

The Coal Stock and Purchasing screen where users schedule the plant and see the resulting emissions and stock usage based on the profile that they are running through a month.

Scenario 1: Introduction (1h 45 minutes)

  • Workshop Overview
  • Market & Trading Fundamentals
  • Understanding the software:
    Run through simulation without any time constraints. Detailed explanation of each screen
  • Learning to trade the three legs

Break (15 minutes)

Scenario 2: Practice (1h)

  • Simulation runs with time constraints
  • Focus: Importance of hedging
  • Feedback from scenario / discussion on what happened

Lunch Break (1h)

Scenario 3: Practice (1h 30 minutes)

  • Simulation runs with time constraints
  • Focus: Importance of credit and factors that influence credit, carbon uncertainty and the impact of legislative change
  • Feedback from scenario / discussion on what happened

Break (15 minutes)

Scenario 4: Competition (1h 15minutes)

  • Simulation runs with time constraints
  • A mystery scenario
  • Discussion – Feedback from scenario / workshop

Intensive Workshop

Scenario 1: Introduction (1h 45 minutes)

  • Workshop Overview
  • Market & Trading Fundamentals
  • Understanding the software:
    Run through simulation without any time constraints. Detailed explanation of each screen

Break (15 minutes)

Scenario 2: Practice/Competition (1h 15 minutes)

  • Simulation runs with time constraints
  • Focus: Importance of hedging
  • Feedback from scenario / workshop

Scenario Duration:

  • 45 minutes

Asset Characteristics:

  • 420MW Coal station, 300,000 Te Stock pile

EU ETS:

  • EU ETS Phases are reduced to 3 months in the simulation to allow for the simulation to be contained within a one year timeframe.
  • Asset Output.
  • Market set to current climate or future climate.
  • Model proposed changes to UK market.
 
Send Page Update Alert

Photographs © Jack Somerset and Artur Sikora. See Gallery.