Electric Power System Economics -- Power Market Design

Author: (American) Stoft, Paul, translated by Song Yonghua, Liu Junyong, Wang Xiuli
Publisher:
Publish Date: 2006-04-01
Features: This book systematically introduces the principles of electricity market design from economic theory to market structure for the first time. Using a practical approach and simple examples, it discusses the economic and engineering foundations, opening 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 concepts of economics, engineering, and market design; 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 the grid 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, market competitiveness misconceptions, 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 in higher education institutions in relevant disciplines.