I'm a finance professor and I am looking for someone with actual trading and risk management knowledge within the energy sector who can tell me about pricing and hedging energy (especially electricity and natural gas) risk. I am writing a book and looking for real world examples.
My question is which tools actually get used? Are exchange traded futures and options used in practice? Are sophisticated pricing models and numerical techniques like Monte Carlo methods used? Are sophisticated econometric models used to forecast load? etc?
What can you tell me about which tools from the academic world actually get used in the real world? What examples can you give me. Thank you for your tutelage.