An Overview of the Colombian Market for Standarized Derivatives of Energy Commodities

This paper presents an overview of DERIVEX, the new Colombian market for standardized derivatives of energy commodities. With the aim of understanding the market operation in context and the sources of electricity price variability, this work presents: first, a disscusion the main physical characteristics of the electricity system; second, the operation of the energy market; and finally, the operation of DERIVEX. In addition, we discuss the inherent uncertinity of forecast monthly electricity prices in the Colombian Market.