About the Programme

The Centre for Energy Regulation (CER) at IIT Kanpur is engaged in capacity building and regulatory research in the power and energy sector. As electricity markets evolve and procurement becomes increasingly exposed to price volatility and market uncertainty, effective procurement planning and risk management assume growing importance.

The Masterclass on Electricity Derivatives aims to develop a comprehensive understanding of derivative instruments and their applications in electricity procurement and risk management. It covers power market operations, derivative instruments and hedging strategies, Indian and international market developments, and the regulatory framework governing these instruments.

The programme also examines applications in power portfolio management and procurement strategies for generators, traders, and commercial and industrial (C&I) consumers, including captive and open-access consumers, with a focus on opportunities and challenges in India's evolving power market.

Relevance of the Programme

• ❖ Understand the economic and financial foundations of electricity derivatives and their role in power markets.
• ❖ Explore power procurement arrangements, market operations, and electricity price formation.
• ❖ Identify price, volume, and basis risks and understand the principles of hedging.
• ❖ Examine Indian and international experience in electricity derivatives markets.
• ❖ Understand regulatory frameworks, market infrastructure, and product-design considerations.
• ❖ Explore derivatives applications in portfolio management and procurement by C&I, captive, and open-access consumers.

Unique Features

Course Modules & Key Topics

Programme Outcomes

• ❖ Explain the fundamentals of electricity derivatives and their role in power markets.
• ❖ Understand the characteristics and potential applications of forwards, futures, options, and swaps.
• ❖ Identify key electricity procurement risks and explain the principles of hedging.
• ❖ Describe Indian and international electricity derivatives markets and their regulatory frameworks.
• ❖ Understand portfolio exposure, hedge ratios, and risk–return trade-offs.
• ❖ Evaluate potential applications for C&I, captive, and open-access consumers.

Programme Format

Evaluation & Certification

• ❖ Participation in programme sessions and prescribed learning activities.
• ❖ Assessment through quizzes, case-based exercises, or practical activities, as specified by the organisers.
• ❖ Certificate awarded subject to prescribed attendance and assessment requirements.
• ❖ Certificate type and eligibility criteria: To be confirmed by the organisers.

Who Should Apply?

Officials from electricity regulatory commissions; professionals from generation, transmission, distribution, and trading companies; power exchange participants and market analysts; C&I, captive, and open-access consumers; professionals from financial institutions, banks, consulting firms, investment organisations, and risk-management teams; faculty, researchers, students, policymakers, and other stakeholders interested in electricity markets and risk management.

Registration

Contact Us

Centre for Energy Regulation (CER)
Department of Management Sciences
Indian Institute of Technology Kanpur, Kanpur – 208016, India
Email: cer_cbp@iitk.ac.in
Website: cer.iitk.ac.in