In-Depth: Practical Statistical Analysis for the Energy & Power Markets
This course adds a third day to the popular Energy Statistical Analysis seminar to allow the time needed for a more in-depth discussion and explanation of many important topics. Additionally, this three-day course is designed as a hand-on workshop. Not only will you learn about practical energy statistical techniques and tools, but you will practice building statistical models in a workshop format.
Learn why companies continue to be exposed to significant energy and electricity related price risk, and how risk and value are properly quantified. Energy and electricity companies worldwide depend on accurate information about the risks and opportunities facing day to day decisions. Statistical analysis is frequently misapplied and many companies find that "a little bit of knowledge is a dangerous thing."
This comprehensive three-day program is designed to provide a solid understanding of key statistical and analytic tools used in the energy and electric power markets. Through a combination of lecture and hands-on exercises that you will complete using your own laptop, participants will learn and practice key energy applications of statistical modeling. Be armed with the tools and methods needed to properly analyze and measure data to reduce risk and increase earnings for your organization.
A laptop is required.
- Correlation & regression analysis; real option analysis; the Black-Scholes option pricing model; binomial trees; GARCH Models; the measurement of energy price risk; and how to use correlation and regression analysis for maintaining a competitive edge.
- Workshop exercises will have you building forecast models including time series and financial engineering price models including Geometric Brownian Motion and Mean Reversion Jump Diffusion.
- How to minimize price risk through operational design flexibility; measure forward price volatility and adapt Value-at-Risk concepts (VaR) for the Energy Industry.
- Workshop exercises will have you building VaR models, calculating volatility and simulating complex energy projects.
- Use actual case studies to examine 1) how Monte Carlo simulation is used to value renewable energy, demand response programs and energy storage projects; 2) bench-marking techniques used for estimating the incremental cost savings of expanding existing operations; and 3) real-option value of generation assets and power purchase agreements.
- Actual workshop problems and case studies will look at statistical applications and tools most frequently used in the energy industry.
- Learn the four manage statistical metrics.
DAY ONE:
The Basics of Deterministic vs. Probabilistic Thinking for Energy Applications
·Basics of data science - Information from Data
·Descriptive Statistics, Means, Standard Deviations, Distribution Shapes
·Frequency Distributions and Confidence Intervals
·Implications of the Empirical Rule, Transformations and Probability
Fundamental Modeling Tools and Simulation
Exercise: Setting up a Monte Carlo Simulation to Evaluate Project Value and Risk
Application: Calculating Value at Risk (VaR)
·The Linear Method and
·The Quadratic Method
·Historic Simulation Method
·Monte Carlo Method
Exercise: Calculating VaR Using Three Different Methods
Application: Hedging Energy Exposure
·Understanding the "Greeks"
·How and when to Hedge
·Delta Hedging
·Dynamic Hedging
·Gamma Hedging
Application: Component Risk Analysis
·Payoff Diagrams
·Portfolio VaR Diagram
·CAPM, RAROC and the Sharp Ratio
·Calculating Load Following Supply Risk
·Layered Hedging using Statistical Triggers
Exercise: Customer Migration Model Estimating Migration out of Standard Offer Service
Exercise: Measuring Load Following Supply Risk
Exercise: Measuring Intermittent Renewable Supply Risk
Correlation and Regression Analysis for Maintaining the Competitive Edge
·Univariate and Multivariate Analysis
·Hypotheses Testing
·Testing for Equal Means and Variances
·Control Charts
DAY TWO:
The Energy Forecasting Toolbox
·Historical Trend Analysis
·Univariate Time Series
·Multivariate Time Series
·Econometric Models
·Bayesian Estimation
·End-Use Models
·Engineering or Process Models
·Optimization
·Network Models
·Simulation
·Game Theory
·Scenarios
·Surveys
Case Study: Statistical Reports that Everyone Can Understand
Case Study: Benchmarking to Industry Standards- GTS Steel vs. KCPL
Exercise: Building Regressions and Forecasting, PDF's, CDF's and Payoff Diagrams
Exercise: Calculating Hedge Ratios, Constructing an Energy Hedge and a Weather Hedge
Exercise: Using Forecasts in Monte Carlo Simulation to Calculate Risk Premium
DAY Three:
Introduction to Real Options Analysis
·Details of Option Model Implementation
·Real Options and Net Present Value (NPV) Analysis
·Estimating Volatility and Uncertainty In Historical Prices
·Black-Scholes, Binomial Trees, and GARCH Models
·Geometric Brownian Motion and Mean Reversion
Application: Minimizing Price Risk through Operational Design Flexibility
Application: Real Option Value of Demand Response and the Smart Grid
Exercise: Calculating Volatility
Exercise: Simulating Prices using GBM and Mean Reversion Monte Carlo Models
Exercise: Valuing Combustion Turbines using Real Options
Exercise: Valuing Gas Storage using Real Options
COVID-19 Information: Please see the PGS COVID-19 policy. You can confirm each hotel's specific COVID-19 policy using the link(s) below.
The price for this comprehensive three-day seminar is $2,945 (USD).
Register online or call (843) 212-4038.
Save $200 per seminar order if you register before the cutoff date.
Cutoff date for discount: September 24, 2026
- Additional attendees and government employees receive a 10% discount.
- Register 4 or more attendees and receive 20% off. Special pricing is available for groups of 5 or more. Call (843) 212-4038 for assistance.
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees are charged at the time of registration unless other arrangements have been made. Checks payable to “PGS Energy Training,” 26 Teal Lane, Hilton Head Island, SC 29926. Cancellations result in a credit good for 2 years, transferable to a colleague. Substitutions may be made at any time. For more on PGS policies, contact our offices at (843) 212-4038.
This live group seminar is eligible for 18.0 CPE credits in Specialized Knowledge. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accepts one-half credits.
PGS is a NASBA-registered CPE sponsor and a GARP-approved CPD provider — see accreditation details.