Electric Power Production, Transmission and Electricity MarketsModule Electricity Market
Academic Year 2022/2023 - Teacher: Giuseppe Marco TINAExpected Learning Outcomes
A student who has continuously followed lectures and exercises foreseen by the course will be able to:
- Understand the basic microeconomic principles underlying electricity markets;
- discuss the different models for wholesale electricity in different countries and the lessons learned from 30 years of liberalisation, what works;
- having an overview of the main developments in electricity market design
- discuss the role of scarcity pricing and capacity mechanisms as well as efficient design rules for balancing payments and reserves
- discuss the potential for market power and present measures to mitigate market power;
Course Structure
Lecture organization
Lecturing is used to convey knowledge and it is organized as follows:
1) the lecture notes are outlined— first major points, then the minor points that elaborate on or explain each major point;
2) relevant, concrete examples, in advance of the lecture, selecting examples familiar and meaningful to the students are provided;
3) students are allowed to stop the lecture to ask relevant questions, make comments, or ask for review;
4) intersperse periodic summaries within the lectures are considered;
5) lectures start with a question, problem, current event, or something that just grabs the students’ attention;
6) active learning techniques are used (technological aids, such as multimedia presentations);
7) simulations sessions are used to check and grasp the theoretical concepts.
Required Prerequisites
The students should have a working knowledge of:
1) ac three-phase electrical circuits,
2) trigonometry, basic calculus, complex numbers, and phasor concepts
3) operation and regulations in power systems (first semester of the course)
Detailed Course Content
1. Introduction to power system economics
2. Elements of microeconomy: introduction
3. Elements of microeconomy: consumer theory
4. Elements of microeconomy: production function
5. Production costs of thermoelectric power plants
6. Elements of microeconomy: offer curve
7. Economic dispatching and Optimal power flow
8. Impact of the grid on market equilibrium
9. centralized market and losses
10. Elements of microeconomy: monopoly
11. Elements of microeconomy: oligopoly
12. game theory and duopoly models
13. Strategic bidding and power market
14. Architecture of electricity markets
15. Electricity markets in Italy
16. Energy markets: MGP and Infra-day
17. Ancillary services markets: ex-ante and balancing
18: Markets and the electricity bill
Textbook Information
Learning materials are resources that the professor uses to help students achieve the learning outcomes of your course. Specifically, the following materials are used:
1) Reference books (see list below).2) Lecture notes (provided by the professor).
3) PowerPoint presentations (provided by the professor).
| Author | Title | Publisher | Year | ISBN |
|---|---|---|---|---|
| S. Vinci | Introduzione alla microeconomia | Liguori editore | 1993 | 9788820722913 |
| R. Cellini L. Lambertini | Una guida alla teoria dei giochi | CLUEB | 1996 | 9788880913078 |
| D. S. Kirschen, G. Strbag | Fundamentals of power system economics | Wiley & Sons Ltd | 2004 | 9781119213253 |
Course Planning
| Subjects | Text References | |
|---|---|---|
| 1 | Introduction to power system economics | Class note and powerpoint presentation (provided by the professor).[3] |
| 2 | Elements of microeconomy: introduction | Class note and powerpoint presentation (provided by the professor). |
| 3 | Elements of microeconomy: consumer theory | Class note and powerpoint presentation (provided by the professor). |
| 4 | Elements of microeconomy: production function | Class note and powerpoint presentation (provided by the professor). |
| 5 | Production costs of thermoelectric power plants | Class note and powerpoint presentation (provided by the professor). |
| 6 | Elements of microeconomy: offer curve | Class note and powerpoint presentation (provided by the professor). |
| 7 | Economic dispatching and Optimal power flow | Class note and powerpoint presentation (provided by the professor). |
| 8 | Impact of grid on market equilibrium | Class note and powerpoint presentation (provided by the professor |
| 9 | centralized market and losses | Class note and powerpoint presentation (provided by the professor |
| 10 | Elements of microeconomy: monopoly | Class note and powerpoint presentation (provided by the professor |
| 11 | Elements of microeconomy: oligopoly | Class note and powerpoint presentation (provided by the professor |
| 12 | game theory and duopoly models | Class note and powerpoint presentation (provided by the professor |
| 13 | Strategic bidding and power market | Class note and powerpoint presentation (provided by the professor). |
| 14 | Architecture of electricity markets | Class note and powerpoint presentation (provided by the professor). |
| 15 | Electricity markets in Italy | Class note and powerpoint presentation (provided by the professor). |
| 16 | Energy markets: MGP and Infra-day | Class note and powerpoint presentation (provided by the professor). |
| 17 | Ancillary services markets: ex-ante and balancing | Class note and powerpoint presentation (provided by the professor). |
| 18 | Markets and the electricity bill | Class note and powerpoint presentation (provided by the professor). |
Learning Assessment
Learning Assessment Procedures
- Oral exam: 2 or 3 questions on the topics listed in the program,
- a final written report on a specific technical or economic problem of the electricity system
Important note: Verification of learning can also be carried out electronically, should the conditions require it.