Economic of Power Systems - Power Market Design

Author: Shidoufu
Publisher:
Publish Date: 2006-04-01
Features: This book systematically introduces the principles of electricity market design from economic theory to market structure. Using a practical approach, it discusses the economic and engineering foundations with simple examples, opening up new areas in price volatility, market-based unit commitment, and market competitiveness analysis. The book is divided into five parts. Part 1 introduces the main economic, engineering, and market design concepts; Part 2 explains how short-term reliability policies determine long-term average installed capacity and reliability; Part 3 examines the classic design of day-ahead and real-time markets; Part 4 covers electricity markets; and Part 5 explores the role of networks in electricity pricing. The main content includes: how marginal cost incorporates fixed costs; the fundamentals of auction design; the value of lost load (VOLL) as an upper limit for both theoretical and practical electricity prices; price constraints, price volatility, investment, and reliability; the standard market design of PJM; power pools and power exchanges, misconceptions about market competitiveness and HHI; loss pricing and congestion pricing. This book is suitable for professionals working in electricity markets and related fields for study and reference, and can also serve as a reference for teachers and students of relevant majors in higher education institutions.