School of Electrical Engineering and Computer Science at KTH

Project description

Around the world, electricity spot prices tend to be highly volatile, varying both across time and across locations on the network. For this reason, as with many other commodities, financial markets have emerged for mitigating the risk and providing signals to investors.
The market participants who trade in electricity across different pricing areas are exposed to locational basis risk – the difference in the price between the point at which the electricity is injected into the network and the point at which it is withdrawn. 
However, these inter-locational hedging instruments have not been subject to the same degree of development or attention as the inter-temporal hedging instruments.

The Electricity Price Area Differentials or EPAD contract is one such inter-locational hedging instrument which allows members on the power exchange to hedge against the area-price risk. The EPAD is a spread contract between one bidding-area price and the Nordic system price. However, some concerns have been raised with available hedging instruments in the Nordic region:

First, system price does not always correlate sufficiently with area prices because of congestion within the Nordic region.

Second, there is limited liquidity in EPADs in certain trading areas.

Third, EPADs are of limited use for mitigating the risk faced by some of the newer generation technologies, such as wind and solar.

In this project we propose to study these three issues and to develop policies to address these concerns, with the ultimate aim of improving the performance of the Nordic wholesale electricity market and smoothing the transition to the low-carbon future. More info

Third-cycle subject: Electrical Engineering

Supervision: Associate Professor Mohammad Reza Hesamzadeh

What we offer

Admission requirements

To be admitted to postgraduate education (Chapter 7, 39 § Swedish Higher Education Ordinance), the applicant must have basic eligibility in accordance with either of the following:

  • passed a second cycle degree (for example a master's degree), or
  • completed course requirements of at least 240 higher education credits, of which at least 60 second-cycle higher education credits, or
  • acquired, in some other way within or outside the country, substantially equivalent knowledge

The applicant must meet all the general entry requirements for PhD students as indicated in the above bullet points at KTH.

In addition to the above, there is also a mandatory requirement for English equivalent to English B/6, read more here


In order to succeed as a doctoral student at KTH you need to be goal oriented and persevering in your work. During the selection process, candidates will be assessed upon their ability to:

  • independently pursue his or her work
  • collaborate with others,
  • have a professional approach, 
  • analyse and work with complex issues,
  • master strong computer programming skills for example using Julia/Python, MATLAB, or GAMS programming languages,
  • show knowledge of EU electricity market designs and involvement in electricity-market related projects,
  • show excellent English-language skills proved by international English exams such as IELTS or TOEFL, 
  • present relevant papers in the areas of applied mathematics, operations research, or electricity markets and
  • present proven ability to work in an international team of researchers and collaborate with other team members.

The applicant must have at least a MSc degree in Electrical Engineering, Energy Economics, Operations Research or Applied Mathematics. Proven excellent knowledge of non-convex optimization theory, discrete optimization theory, stochastic processes, mathematical decomposition techniques, and electricity-market principles. Students with MSc degrees from other disciplines (for example physics or mathematics) who are interested in and capable of performing theoretical research in electricity-market areas are recommended to apply. 

The applicant must be able to nominate at least two reference persons who can comment on the applicant scientific performance. The recommendation letters can be also sent along with other application documents.

After the qualification requirements, great emphasis will be placed on personal competency. 

Target degree: Doctoral degree

Information regarding admission and employment

Only those admitted to postgraduate education may be employed as a doctoral student. The total length of employment may not be longer than what corresponds to full-time doctoral education in four years ' time. An employed doctoral student can, to a limited extent (maximum 20%), perform certain tasks within their role, e.g. training and administration. A new position as a doctoral student is for a maximum of one year, and then the employment may be renewed for a maximum of two years at a time. In the case of studies that are to be completed with a licentiate degree, the total period of employment may not be longer than what corresponds to full-time doctoral education for two years.

Union representatives

Contact information KTH's website.

Doctoral section (Students’ union on KTH Royal Institute of Technology)

Contact information section's website.


Apply for the position and admission through KTH's recruitment system. It is the applicant’s responsibility to ensure that the application is complete in accordance with the instructions in the advertisement.

Applications must be received at the last closing date at midnight, CET/CEST (Central European Time/Central European Summer Time).

Applications must include:

  • CV including your relevant professional experience and knowledge.
  • Application letter with a brief description of why you want to pursue research studies, about what your academic interests are and how they relate to your previous studies and future goals. (Maximum 2 pages long)
  • Copies of diplomas and grades from previous university studies and certificates of fulfilled language requirements (see above). Translations into English or Swedish if the original document is not issued in one of these languages. Copies of originals must be certified.
  • Representative publications or technical reports. For longer documents, please provide a summary (abstract) and a web link to the full text.

Other information

Striving towards gender equality, diversity and equal conditions is both a question of quality for KTH and a given part of our values.

For information about processing of personal data in the recruitment process please read here.

We firmly decline all contact with staffing, recruitment agencies and job ad salespersons.

Disclaimer: In case of discrepancy between the Swedish original and the English translation of the job announcement, the Swedish version takes precedence.



Type of employment Temporary position
Contract type Full time
First day of employment According to agreement
Salary Monthly salary according to KTH's doctoral student salary agreement
Number of positions 1
Full-time equivalent 100%
City Stockholm
County Stockholms län
Country Sweden
Reference number J-2023-0572
  • Associate Professor Mohammad Reza Hesamzadeh,
  • Lisa Olsson HR Officer,
Published 09.Mar.2023
Last application date 06.Apr.2023 11:59 PM CEST

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