Offering a concise but complete survey of the common features of the microstructure of
electricity markets this book describes the state of the art in the different proposed
electricity price models for pricing derivatives and in the numerical methods used to price and
hedge the most prominent derivatives in electricity markets namely power plants and swings.
The mathematical content of the book has intentionally been made light in order to concentrate
on the main subject matter avoiding fastidious computations. Wherever possible the models are
illustrated by diagrams. The book should allow prospective researchers in the field of
electricity derivatives to focus on the actual difficulties associated with the subject. It
should also offer a brief but exhaustive overview of the latest techniques used by financial
engineers in energy utilities and energy trading desks.
