ENE424 Electricity Markets

• 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 structures. These structures are 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. 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 and market mechanisms.

  Knowledge - after completing this course, students

  • have an overview of the main building blocks for deregulating and restructuring 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.

• 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).

  Case project (70%): Presentation slides with written comments and oral group presentation (2-3 students in each group), followed by individual discussion. Individual grading.

• Grading Scale

  A - F.

• Computer tools

  None in particular.

• 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.

  Lectures