Power system restructuring and deregulation

Key points of electricity market liberalization: unbundled structure, competition, studies of new paradigms, market efficiency.

 

Supply and demand modeling: definition, bidding and demand profiles, marginal cost, utility cost, revenue and benefit, complex bids for a multiple period market.

 

Energy contracts and market mechanisms: spot market vs. open energy market, forward and futures contracts, bilateral trading: long term - over the counter - electronic trading, pool trading: market clearing price - impact of demand elasticity and price CAP, risk management: price volatility - call & put options - contracts for difference, examples.

 

Bidding strategies: perfect competition vs. imperfect competition, market power: definition - HHI calculation, Game Theory and its variations: complete/incomplete information - cooperative/non cooperative game, - static/dynamic game - ..., Nash equilibrium & Pareto optima, best response function - Minmax & Maxmin methods - dominant strategy method, particular cases: Cournot & Bertrand models, examples.

 

System security & ancillary services: definitions and system security requirements, transmission facilities vs. system security, ancillary services: compulsory provision vs. provision through markets, example of balancing market mechanism, introduction to congestion management: market solution & technical solution (examples using FACTS devices or phases shifter transformers), examples.

 

Transmission pricing & congestion management: rolled-in methods: postage stamp method - contract path method - MW mile method - ..., Available Transmission Capacity calculation (ATC), PTDF calculation, TLR method, willingness to pay method, Inc-Dec method (redispatching), counter-flow methods, auctioning method (cross-borders), zonal pricing: market splitting/coupling, nodal pricing & Locational Marginal Prices (LMP) calculation: analysis of the appropriateness - application of market power - hedging (FTR, TTC, ...), examples.