Electricity Futures

Bachelor thesis deals with the forward electricity market. It describes how the liberalized electricity market and the energy exchanges work with in-depth focus on the Czech Republic. The basic theoretical approaches towards the price formation in electricity market and the valuation of electricity futures are also shown. Furthermore, the thesis analyses futures prices on Prague energy exchange compared to prices on other European exchanges and to prices of other energy commodities. The last part of the thesis calculates risk premia in monthly futures on Prague energy exchange