Description
Book SynopsisA comprehensive and up-to-date discussion of the economic rationale behind the production, delivery and exchange of electricity. A must read for those who want to learn and teach the specificities of electricity markets and understand how these markets can be optimally designed to produce and deliver electricity effectively and efficiently.
Trade Review'This book fills an important gap in the market for a graduate level textbook of electricity economics that sets out the physics, mathematics, economics and institutional elements needed to understand modern electricity markets. A mastery of this excellent text should provide a solid grounding to enable the student to understand, and ideally contribute to, the electricity economics literature, which can appear complex and daunting to even a well-trained micro-economist or electrical engineer.' David Newbery, Director of the Energy Policy Research Group (EPRG), University of Cambridge
Table of ContentsIntroduction; Part I. Introduction to Energy and Electricity: 1. Basic principles, definitions and unit measures; 2. Introduction to electricity; brief history of the power industry; Part II. The Basic Design of the Electricity Systems and Markets: 3. The electricity systems and the electricity supply chain; 4. The four market designs of the electricity system; 5. Energy products and the time-dimension of electricity markets; 6. Some principles of regulation of the electricity sector; Part III. Simplified Isolated Markets without Network Congestions: 7. Load and power generation; 8. The centralized solution of optimal dispatching; 9. Welfare maximisation with time - varying load; 10. The market solution to optimal dispatching; 11. Balancing markets; Part IV. Competition in Wholesale Electricity Markets: 12. Wholesale market competition; 13. Market power in electricity markets; Part V. Introducing Transmission Networks: Network Congestions and Electricity Import-Export: 14. Electricity transmission: basic principles; 15. Meshed networks and congestion; 16. Transmission pricing in practice; 17. From nodal prices to transmission capacity expansion; 18. Transmission rights and price risk hedging; Part VI. Economics of Electricity Retail Markets: 19. Retail competition: supplying electricity to final consumers; 20. Assessing the benefits of retail competition; Part VII. Investing in Power Generation: 21. Optimal investment in power generation; 22. Energy-only markets vs markets with capacity remuneration mechanisms; 23. Capacity remuneration mechanisms; Part VIII. Environmental Challenges and the Future of Electricity Markets: 24. Global warming and the electricity markets; 25. Renewable energy sources and electricity production; 26. The integration of renewable energy sources in the electricity system; 27. Smart grids.
