This thesis addresses the integration of a battery energy storage system (BESS) into the hedging process of a retail electricity portfolio against price risk. Since standardized futures contracts cannot fully match the actual load profile due to their shape, part of the portfolio remains exposed to fluctuations in market electricity prices. The thesis develops a methodology for determining the optimal quantities of standardized hedging products and for integrating a battery energy storage system into the hedging process using three optimization algorithms. Their performance is evaluated based on the coverage of the open position, the expected portfolio value, and the risk measures Value at Risk (VaR) and Conditional Value at Risk (CVaR). The empirical analysis shows that a battery energy storage system can effectively complement traditional hedging strategies, while its optimal application depends on the trade-off between risk reduction and investment costs.
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