Wuppertal. Full Steam Ahead: APMANA-EAREC Project Commences with New PhD Researchers 🇩🇪 🇪🇸

Computational Finance, Computational Finance and Energy Markets, ECMI Nodes, Featured, Renewable energy, Wuppertal

We are excited to share a major update on the bilateral German-Spanish research project, APMANA-EAREC (Advanced Pricing and Mathematical ANalysis in E-markets: EA and REC), funded by the DFG (Germany) and AEI (Spain). This collaborative effort, based at the University of Wuppertal and the University of A Coruña, has achieved a critical milestone: the project is officially operational with the employment of its two dedicated PhD researchers.

Research Kicks Off in A Coruña and Wuppertal

After a rigorous selection process, the two PhD positions—one in A Coruña and one in Wuppertal—have been successfully filled in October 2025. The official start of their research marks the beginning of the project’s deep dive into the complex dynamics of energy markets. This crucial project, which also includes associated partners from Lisbon, Paris, and London, is set to run through September 2028.

The Core Focus: EA and RECs

The APMANA-EAREC project is dedicated to developing sophisticated mathematical and numerical models to analyze and predict the behavior of key financial instruments driving the green energy transition:

  1. CO2 Emission Allowances (EA): These are central to the Emissions Trading Systems (ETS), acting as the primary tool to put a price on carbon pollution. The project will focus on the complex dynamics and pricing of these allowances and related derivatives, factoring in variables like electricity demand and fuel prices.
  2. Renewable Energy Certificates (RECs): RECs serve as proof that a unit of electricity was generated from a renewable energy source. The project will model the pricing of RECs and their derivatives, addressing the challenges posed by their fully coupled dynamics within the energy market.

By leveraging advanced mathematical tools, such as Forward-Backward Stochastic Differential Equations (FBSDEs) and nonlinear Partial Differential Equations (PDEs), the research aims to provide valuable insights for policymakers and market participants navigating the transition to a sustainable energy future.

For more detailed information on the project’s objectives, methodology, and ongoing developments, please visit the official webpage:

🌐 APMANA-EAREC Project Webpage