Electricity Markets - Efficiency and Sustainability

ENE424 Electricity Markets - Efficiency and Sustainability

  • Topics


    Some of the main topics are:

    • Electricity market reforms (main premises, different approaches, restructuring)
    • Market mechanisms (electricity spot market, ancillary services, congestion management, financial electricity markets)
    • Regulatory issues of electricity markets (competition policy, regulation of natural monopolies, environmental measures)

  • Learning outcome

    Learning outcome

    Electricity markets worldwide have been restructured and deregulated since the early 1990s. Different countries have adopted different structures. A key issue is nevertheless the competitive exchange of electricity, along with a regulatory approach to the electricity grid. An important aspect of market design is to assess the interactions between the operational and commercial aspects of the electricity markets. The objective of the course is to study electricity market design, identifying key requirements of market structure and market mechanisms.

    After completing this course, students will:

    • Have an overview of the main building blocks for deregulating and restructuring electricity markets
    • Be able to compare and discuss differences in chosen structure and electricity market design in different countries
    • Be able to identify and understand the specific market mechanisms necessary in an electricity market, i.e. mechanisms for energy trade, ancillary services, congestion management, risk management, environmental measures, and regulatory policies
    • Understand how the efficiency of the market depends upon the design and interaction of these mechanisms
    • Have acquired knowledge of electricity market structures that is necessary to understand and to assess different proposed policies and measures aiming at e.g. further efficiency, the integration of new technologies, and environmental protection
    • Be able to professionally communicate results and opinions

  • Teaching


    Plenary lectures, Presentations in groups, Case-project.

  • Required prerequisites

    Required prerequisites

    None in particular.

  • Requirements for course approval

    Requirements for course approval

    Active participation in class is required

  • Assessment


    Article presentation (30%): Power-point slides, presentation and discussion. Group grading . Case project (70%): Power-point slides with written comments and oral group presentation, followed by individual discussion. Individual grading

  • Grading Scale

    Grading Scale

    Grading scale A - F.

  • Computer tools

    Computer tools

    None in particular.

  • Semester



  • Literature


    Wangensteen, Ivar (2012): ¿Power System Economics - The Nordic Electricity Market,¿ Tapir Academic Press, Trondheim, Norway.

    Rud, Linda (2009): ¿Selected Topics on Early Electricity Market Design in Norway¿, Essay 1 in Essays on Electricity Markets, PhD dissertation NHH (2008) / SNF Report 10/09. (Downloadable at www.snf.no, SNF report 10, 2009, R10/09.)

    Selected articles and book chapters.



ECTS Credits
Teaching language

Course responsible

Mette Bjørndal, Department of Business and Management Science