We often are asked about recommendations for books on the natural gas and electricity business. Over the next few months we will share lists of some of our favorite energy industry books. Today we’re offering our top picks that discuss electric markets. Below is the list (note that the books are listed in order of how advanced your understanding needs to be to follow the discussion, starting with books that are easier to understand):
Understanding Today’s Electricity Business,
by Bob Shively and John Ferrare
Although not as advanced as the Electric Market Dynamics (EMD) class, this book provides the industry background to have a solid foundation in understanding the topics we discuss in EMD. Written in plain language. Available at www.enerdynamics.com.
Fundamentals of Power System Economics,
by D.S. Kirschen
Very readable basic overview of principles of electric markets including modeling, how markets function, and how market participants do business. Available on www.amazon.com.
Energy Risk Management, Hedging Strategies and Instruments for the International Energy Markets, edited by Peter Fusaro
Explains many aspects of energy risk management in fairly clear language. No math knowledge required to read this book. Getting to be a little bit dated since it was written in 1998. Available at http://www.global-change.com.
Energy Risk Management, A Non-Technical Introduction to Energy Derivatives,
by Steve Leppard
Explains the basics of risk management techniques and instruments used in the energy industry in language that is understandable to professionals that have spent some time in the energy industry. The book does not require advanced mathematical knowledge to understand. Available at www.riskbooks.com.
Risk and Flexibility in Electricity, Introduction to the Fundamentals and Techniques, edited by Anne Ku
A more advanced book that discusses a variety of topics concerning electricity markets and risk techniques. Although the discussion is at a higher level, the book does not require advanced mathematical knowledge to understand. Available at www.riskbooks.com.
Energy Modelling, Advances in the Management of Uncertainty,
edited by Vincent Kaminski
Similar to the above book edited by Ku, but starts to get a bit into the mathematical equations used to describe markets. Available at www.riskbooks.com.
Energy Risk, Valuing and Managing Energy Derivatives, by Dragana Pilipovic
This is for those of you that want to delve into the mathematical equations that underlie the principles we discuss in EMD. Bring an understanding of advanced mathematical concepts if you want to understand this book. Available from Amazon.com.