ELK 578E - Electricity Markets

Course Objectives

The aim of this course is:
1. To introduce the objectives of deregulation, market players, and alternative structures of the restructured electricity market.
2. To discuss the concepts from microeconomics that is essential for the understanding of electricity markets.
3. To analyze of the operation of power systems in a competitive environment.
4. To evaluate the pricing of transmission networks and to compute the locational marginal pricing.
5. To examine power system security and its effects on electricity prices.
6. To understand the need for regulation, alternative approaches to investment pricing.
7. To design the electricity markets.

Course Description

Introduction: Necessity for competition in the electricity markets , Fundamentals of Markets , Market Players, Models of Competition
Markets for electrical energy: The need for a managed spot market, Open electrical energy markets.
Participating in markets for electrical energy: The consumer’s and the producer’s perspective.
System security and ancillary services: Describing the Needs, Obtaining ancillary services.
Transmission networks and electricity markets: Decentralized (bilateral) and centralized (pool-based) trading over a transmission network.
Investing in generation and transmission: Generation capacity from an investor’s and the costumer’s perspective, The nature of the transmission business, Cost-based and Value-based transmission expansion.