 Our framework allows to include typical features as the Samuelson effect, seasonalities as well as a stochastic volatilityin the absence of arbitrage. We show that our suggested model is suitable for pricing options on electricity swaps using the Heston method. Especially, we illustrate the related pricing procedure for electricity swaps and options in the setting of Arismendi et al. (2016), Schneider and Tavin (2018)  and Fanelli and Schmeck (2019)  .
<clarity>  Our framework allows to include typical features as the Samuelson effect, seasonalities as well as a stochastic volatilityin the absence of arbitrage. We show that our suggested model is suitable for pricing options on electricity swaps using the Heston method. Especially, we illustrate the related pricing procedure for electricity swaps and options in the setting of Arismendi et al. (2016), Schneider and Tavin (2018)  and Fanelli and Schmeck (2019)  .
 Our framework allows to include typical features as the Samuelson effect, seasonalities , and stochastic volatility. In particular, we investigate the pricing procedures for electricity swaps and options in the setting of Arismendi et al. (2016), Schneider and Tavin (2018) and Fanelli and Schmeck (2019) .