Electricity Markets

ENE424 Electricity Markets

Spring 2021

Autumn 2021
  • Topics

    Some of the main topics are:

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

  • Learning outcome

    Electricity markets worldwide have been restructured and deregulated since the early 1990s. Different countries have adopted different designs and structures. These structures are now being challenged by new renewable resources, new technologies and new business models. A key issue is nevertheless the competitive exchange of electricity, along with a regulatory approach to the electricity grid and businesses. 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 elements of market structure, market mechanisms and regulation.

    Knowledge - after completing this course, students

    • have an overview of the main building blocks for deregulating and restructuring of electricity markets
    • understand how the efficiency of the market depends upon the design and interaction of mechanisms for energy trade, ancillary services, congestion management, risk management, environmental measures, and regulatory policies

    Skills - after completing this course, students

    • are able to compare and discuss differences in chosen structure and electricity market design in different countries
    • are 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

    General competencies - after completing this course, students

    • 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
    • are able to professionally communicate results and opinions

  • Teaching

    Plenary lectures, Presentations in groups, Case-project.

    It will be possible to follow the course digitally.

  • Required prerequisites

    None in particular.

  • Requirements for course approval

    Active participation in class is required.

  • Assessment

    Article presentation (30%): Presentation slides, presentation and discussion. Group grading (2 students in each group). Students will work on the article presentation (approximately) between week 39 and week 43.

    Case project (70%): Presentation slides with written comments and oral group presentation (2-3 students in each group), followed by individual discussion. Individual grading. Students will work on the case project (approximately) between week 44 and week 48.

    Both elements have to be taken in the same semester.

  • Grading Scale

    A - F.

  • Computer tools

    None in particular.

  • Literature

    Creti, A. and Fontini, F. (2019): Economics of Electricity: Markets, Competition and Rules. Cambridge University Press.

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

    Selected articles and book chapters.



ECTS Credits
Teaching language

Autumn. Offered Autumn 2020.

Course responsible

Associate Professor Olvar Bergland, Norwegian University of Life Sciences (NMBU).