Portfolio and Risk Management

Volatile electricity prices and fluctuating infeed of renewable energies are only two examples of risk factors in the energy industry. Accordingly, decisions under uncertainty are a central issue in the energy economy. Risks and uncertainties pose a particular challenge to companies.

In this context, the Portfolio and Risk Management Group develops methods and models for supporting investment, operational and trading decisions in the energy economy. The focus is on modelling electricity prices and other commodities as well as methods for evaluating assets and uncertainties.

The following questions may be mentioned as examples:

  • Development of hybrid pricing models containing fundamental and stochastic influence factors
  • Development of tools for risk management and decision-making in energy companies
  • Evaluation of power plants and storage as a real option for the determination of the intrinsic and extrinsic value
  • Analysis of the risks and potentials of short-term, in particular the intraday trading for electric energy

The team Portfolio and Risk Management primarily deals with projects in cooperation with companies from the energy sector.

Head of the Portfolio and Risk Management Group is Mr. M.Sc. Lars Ostmeier, who is also available as contacts for relevant research and practical questions.