Energy Markets Group
At London Business School, an energy research programme has existed since 1986, when it started to provide modelling advice on forecasting and capacity planning to the UK public-sector electricity monopoly, the CEGB. Following restructuring and privatisation of that industry in 1990, the focus switched to strategic modelling, price behaviour and the problems of a competitive industry. EMG was created to co-ordinate these activities. Since then it has extended its collaborative work with a number of companies and government agencies worldwide. Its distinctive features have been:
Technology Transfer
We work with public and private energy utilities to help develop competencies in the applications of new methods of analysis. The style and focus of all of this work is to develop models with the right balance of detail and strategic transparency, and to make them attractive for high level management to engage in analysis. The group has developed a world-wide reputation for the use of agent-based simulation techniques and structural econometrics in the modelling of power prices.
Policy Relevance
To complement strategic insight at the company level, policy and industry-wide studies are also undertaken. The group has provided evidence to official inquiries related to the reform of the England and Wales electricity pool, the interaction of gas and electricity markets, and market power.
International Scope
Liberalisation of markets, conservation, pricing and demand-side issues have been a feature of projects undertaken for a wide range of official organisations and private companies worldwide. Facilitating the exchange of different international experiences, between analysts and managers, is an important aspect of our work. We regularly host visiting scholars, who seek to benefit from participation in the Group´s modelling experience.
Courses
The Modelling and Managing Competitive Electricity Markets course has run successfully for a number of years and is offered on both an open and a company-specific basis.
The Modelling and Forecasting High Frequency Data course extends over three days to present the latest statistical techniques applied to energy prices and volume.
A new workshop on Managing Carbon Price Risk, and the annual seminar on Risk, Uncertainty and Energy Investment, both deal with topics of crucial interest to industry practitioners and policy makers, and are offered in collaboration with the London Energy Forum, at the Royal Society.
Further details and booking for all these events can be done through http://www.londonenergyforum.co.uk/
The EMG research programme is directed by Professor Derek W. Bunn, supported by a number of London Business School researchers and visiting scholars.
Recent published and working papers
