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Master’s in Energy Risk Management and Hedging Engineering

Online master's programme of 1,900 hours in energy risk management and hedging engineering, structured in 12 modules covering energy commodity markets, derivatives, hedging strategies, market risk measurement, price modelling, volume, credit and operational risk, trading regulation and climate risk, with an assigned technical tutor.

Duration1900 h
ModeOnline
LanguageEnglish
Start datesSet by the faculty
AwardSEIUM Institute diploma
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Learning outcomes

What you will be able to do

01

Identify the risk exposures of energy market participants.

02

Understand how energy commodity markets work.

03

Value energy derivatives.

04

Design hedging strategies for portfolios.

05

Measure market risk with standard metrics.

06

Manage credit and counterparty risk.

07

Comply with energy trading regulation.

Profile

Who it's for

  • Energy risk managers in utilities, suppliers or industrial companies.
  • Quantitative energy analysts building pricing and risk models.
  • Electricity and gas traders who want a deeper grasp of risk and hedging.
  • REMIT compliance officers.
  • Origination analysts structuring PPAs and hedges.
  • Risk management consultants advising energy clients.
  • Engineering or science graduates aiming to move into energy trading and supply.
Standards & tools

What you'll work with

  • Regulation (EU) 1227/2011 (REMIT, wholesale energy market integrity and transparency)
  • Regulation (EU) 2024/1106 (REMIT amendment)
  • Regulation (EU) 648/2012 (EMIR, OTC derivatives and clearing)
  • Directive 2014/65/EU (MiFID II, markets in financial instruments)
  • IFRS 9 (financial instruments)
  • ISO 31000:2018 (risk management guidelines)
  • TCFD Recommendations (2017) (climate-related financial disclosures)
  • Directive (EU) 2022/2464 (CSRD, corporate sustainability reporting)
  • Python (numpy, pandas, scipy)
  • R
  • Excel (VBA)
  • MATLAB
  • Allegro ETRM
Syllabus

12 modules · 1900 h

  1. 1.1Energy price volatility
  2. 1.2The 2021–2022 energy crisis
  3. 1.3Types of risk: market, credit, operational and liquidity
  4. 1.4Exposures of generators, suppliers and consumers
  5. 1.5Correlations between commodities
  6. 1.6Regulatory risk in energy
  7. 1.7Risk governance
  8. 1.8Risk appetite
  9. 1.9Risk functions in utilities
  10. 1.10Case study: exposure map of an energy supplier
  1. 2.1European electricity markets
  2. 2.2TTF and MIBGAS gas markets
  3. 2.3Emission allowance market
  4. 2.4Oil and coal markets
  5. 2.5Spot and forward markets
  6. 2.6Exchanges and OTC
  7. 2.7Clearing houses
  8. 2.8Liquidity and depth
  9. 2.9Market data sources
  10. 2.10Lab: analysis of electricity forward curves
  1. 3.1Futures and forwards
  2. 3.2Commodity swaps
  3. 3.3European and American options
  4. 3.4Asian options on averages
  5. 3.5Spark and dark spreads
  6. 3.6Swing options
  7. 3.7Capacity contracts
  8. 3.8Derivative valuation
  9. 3.9Derivative accounting
  10. 3.10Practical exercise: valuation of an electricity option
  1. 4.1Hedging for renewable generators
  2. 4.2Hedging for energy suppliers
  3. 4.3Hedging for large consumers
  4. 4.4Optimal hedge ratio
  5. 4.5Dynamic hedging and rebalancing
  6. 4.6Basis and profile risk
  7. 4.7Hedging solar cannibalisation
  8. 4.8Hedging with PPAs
  9. 4.9Effectiveness assessment
  10. 4.10Lab: hedging strategy for a photovoltaic portfolio
  1. 5.1Parametric value at risk
  2. 5.2Historical value at risk
  3. 5.3Monte Carlo simulation
  4. 5.4Expected shortfall
  5. 5.5Profit at risk and cash flow at risk
  6. 5.6Stress testing
  7. 5.7Backtesting of risk models
  8. 5.8Risk limits
  9. 5.9Risk reporting
  10. 5.10Practical exercise: calculating the VaR and CFaR of a portfolio
  1. 6.1Stochastic price processes
  2. 6.2Mean reversion
  3. 6.3Jumps and spikes
  4. 6.4Regime-switching models
  5. 6.5Fundamental dispatch models
  6. 6.6Scenario simulation
  7. 6.7Cross-market correlation
  8. 6.8Long-term price forecasting
  9. 6.9Model calibration
  10. 6.10Lab: mean-reverting price simulation
  1. 7.1Renewable output uncertainty
  2. 7.2Hourly profile risk
  3. 7.3Captured price by technology
  4. 7.4Imbalances and their cost
  5. 7.5Customer demand risk
  6. 7.6Wind weather derivatives
  7. 7.7Parametric production insurance
  8. 7.8Managing diversified portfolios
  9. 7.9Measuring volume risk
  10. 7.10Case study: volume hedging for a wind farm
  1. 8.1Credit exposure in energy
  2. 8.2Guarantees and collateral
  3. 8.3Clearing house margins
  4. 8.4Margin-driven liquidity risk
  5. 8.5Internal credit ratings
  6. 8.6EFET and ISDA master agreements
  7. 8.7Set-off and netting
  8. 8.8Counterparty concentration
  9. 8.9Default management
  10. 8.10Practical exercise: credit exposure analysis of a PPA
  1. 9.1REMIT and market integrity
  2. 9.2EMIR and reporting obligations
  3. 9.3MiFID II and exemptions
  4. 9.4Market abuse
  5. 9.5ACER and CNMC supervision
  6. 9.6Transaction reporting
  7. 9.7Compliance programmes
  8. 9.8ACER enforcement cases
  9. 9.9Recent REMIT reforms
  10. 9.10Workshop: REMIT compliance programme
  1. 10.1Operational risk in trading
  2. 10.2Segregation of duties
  3. 10.3ETRM trading systems
  4. 10.4Internal trading controls
  5. 10.5Risk committees
  6. 10.6Risk policies
  7. 10.7Internal risk audit
  8. 10.8Model risk
  9. 10.9Risk culture
  10. 10.10Case study: risk policy of an energy supplier
  1. 11.1Physical risks of climate change
  2. 11.2Transition risks
  3. 11.3TCFD disclosure recommendations
  4. 11.4NGFS climate scenarios
  5. 11.5Carbon price and stranded assets
  6. 11.6Climate stress testing
  7. 11.7Climate risk disclosure
  8. 11.8Adaptation strategies
  9. 11.9Responsible investment in energy
  10. 11.10Practical exercise: climate stress test of a generation portfolio
  1. 12.1Defining the portfolio
  2. 12.2Identifying exposures
  3. 12.3Price and volume modelling
  4. 12.4Risk measurement
  5. 12.5Designing the hedging strategy
  6. 12.6Regulatory compliance assessment
  7. 12.7Management recommendations
  8. 12.8Conclusions and future work
  9. 12.9Thesis report
  10. 12.10Master's Thesis: defence before a panel
Methodology, software & labs

How you'll learn

100% online training on the SEIUM campus, with downloadable material, recorded classes and an assigned technical tutor. There are no fixed timetables: you progress at your own pace within the intake, so the programme can be combined with work.

Each module combines theory, guided reading of the original standard and applied exercises. The working software is Python (numpy, pandas, scipy), R, Excel (VBA), MATLAB and Allegro ETRM, in free, academic or evaluation versions. Exercises are based on real procedures for energy derivative valuation, VaR and CFaR calculation and hedging strategy design. Assessment is continuous by module, plus the final Master's Thesis.

Standards covered: Regulation (EU) 1227/2011 (REMIT), Regulation (EU) 2024/1106 (REMIT amendment), Regulation (EU) 648/2012 (EMIR), Directive 2014/65/EU (MiFID II), IFRS 9 (financial instruments), ISO 31000:2018, TCFD Recommendations (2017), Directive (EU) 2022/2464 (CSRD).

Assigned technical tutor:every module ends with a deliverable that your tutor marks individually.
Standards-based learning:guided reading of REMIT, EMIR, MiFID II and IFRS 9 applied to real cases, not as a theoretical annex.
Industry software:Python (numpy, pandas, scipy), R, Excel (VBA), MATLAB and Allegro ETRM, in free, academic or evaluation versions.
Master's Thesis with defence:a full risk management project for an energy portfolio, from exposure identification and risk measurement to hedging strategy and compliance, defended before a panel.
Flexible format:100% online, no fixed timetables, compatible with full-time work.
Capstone project

Build it end to end

Your final project follows the real engineering workflow, step by step, reviewed by your tutor.

Exposure mapping
Map the market, credit and operational exposures of an energy supplier.
Derivative valuation
Analyse electricity forward curves and value an option on electricity.
Hedging strategy
Design a hedging strategy for a photovoltaic portfolio and assess its effectiveness.
VaR and CFaR measurement
Calculate the VaR and CFaR of a portfolio and run a climate stress test.
Master's Thesis
A complete risk management and hedging plan for an energy portfolio with compliance assessment, defended before a panel.
Career opportunities

Where this takes you

Energy risk managerQuantitative energy analystElectricity and gas traderREMIT compliance officerOrigination analystRisk management consultant
Admissions & scholarships

Requirements

  • A university degree in engineering, science or architecture, or equivalent demonstrable professional experience.
  • An internet connection and a computer capable of running the programme software.
  • English sufficient to read technical standards.

Ready to start?

Send your application today. Our admissions team replies within 72 hours with your study plan and funding options.

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FAQ

Frequently asked questions

The programme totals 1,900 hours over 12–14 months. You set your own pace within each intake, and your tutor helps you plan the workload around your job.

You work with Python (numpy, pandas, scipy), R, Excel (VBA), MATLAB and Allegro ETRM, using free, academic or evaluation versions. Your tutor indicates the free alternative wherever one exists.

A SEIUM Institute diploma, awarded on passing the continuous assessment and the Master's Thesis. It is SEIUM's own qualification, not an official state degree; its recognition depends on the programme completed and the regulations of each country.

Yes. Modules passed in a course or postgraduate diploma in the same area are recognised in the higher programme. Ask about the recognition policy when you enrol.

A degree in engineering, science or architecture, or equivalent professional experience, plus a suitable computer, an internet connection and English sufficient to read technical standards.

Start dates are set by SEIUM's faculty for each intake. Our admissions team will confirm the next available date when you apply.

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