Electricity Markets

ENE424 Electricity Markets

Autumn 2024

  • Topics

    Electricity markets worldwide have been restructured and deregulated since the early 1990s. Different countries have adopted different market designs to increase efficiency. The more recent transition to a decarbonized energy system has presented the electricity sector with both challenges and opportunities. On the one hand, the sector needs to reduce its carbon footprint, and on the other hand, electrification in itself contributes to decarbonization of other key emitting sectors, such as transport, buildings, and industry. Consequently, the existing 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, and introduce the students to the fundamental aspects of renewable energy sources, from the point of view of both market operators and market participants.

    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).
    • Increasing penetration of intermittent renewable energy sources in power systems.

  • Learning outcome

    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
    • understand the impact of intermittent renewables on electricity markets and means to increase their share in the power systems

    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

    Lectures and seminars, lab sessions, group work, student presentations.

    Guests from the industry may participate in some of the lectures.

  • Required prerequisites

    None in particular.

  • Credit reduction due to overlap


  • Compulsory Activity

    Active participation in class is required.

  • Assessment

    The grade for the course is given based on a portfolio consisting of:

    1. Presentation of a chosen journal article.
    2. Term paper on a chosen topic (can be connected to the chosen article).
    3. Oral presentation of the term paper.
    4. A note where each student reflects on her/his learning and development during the course.

    Assessment elements 1-3 are group-based (2-3 students), while element 4 is individual. The final grade is individual and is based on an overall assessment of the four elements, including the student's development during the semester. All elements have to be taken in the same semester.

    Since some elements cannot be reassessed, the grade cannot be appealed.

  • Grading Scale

    A - F

  • Computer tools

    For the lab sessions we will use Excel Solver and R.

  • Literature

    To be announced.


ECTS Credits
Teaching language

Autumn. Offered autumn 2024

Course responsible

Professor Endre Bjørndal, Department of Business and Management Science.

Professor Mette Bjørndal, Department of Business and Management Science (hovedemneansvarlig).