Electricity Markets and Power System Economics  book cover
1st Edition

Electricity Markets and Power System Economics

ISBN 9781466501690
Published November 12, 2013 by CRC Press
220 Pages 101 B/W Illustrations

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Book Description

After the first power plant in history was commissioned for commercial operation by Thomas Edison on Pearl Street in New York in 1882, electricity was sold as a consumer product at market prices. After a period of rapid development, electricity had become such a fundamental product that regulation was believed to be necessary. Since then, the power industry had been considered a natural monopoly and undergone periods of tight regulation. Deregulation started in the early 1980s and as a result, most developed countries run their power industries using a market approach.

With the theories and rules of electricity markets developing rapidly, it is often difficult for beginners to start learning and difficult for those in the field to keep up. Bringing together information previously scattered among various journals and scholarly articles, Electricity Markets and Power System Economics provides a comprehensive overview of the current state of development in the electricity market. It introduces the fundamental principles of power system operation so that even those with a basic understanding can benefit from the book.  

The book includes a series of consistent mathematical models of market operation of power systems, and original cases with solutions. Systematically describing the basic building blocks of electricity market theory, the book provides a guide to underlying theory and mainstream market rules.

Table of Contents

Demand and Supply
Market Equilibrium
Price Elasticity and Competitive Market
Economy of Scale and Natural Monopoly
Brief History of Electricity Markets

Fundamentals of Power System Operation
Economic Dispatch
Load Flow Calculation
Load Flow under Outages
Fundamentals of Constrained Optimization
Security-Constrained Economic Dispatch
Load Frequency Control
Spinning Reserve
Generation Scheduling
Calculation of Transfer Capabilities of Transmission Interfaces
Overview of Power System Operation

Market Design: Spot Energy Market
Organization after Deregulation
Uniform Pricing
Nodal Pricing
Multiple Block Bidding
Demand Side Bidding
Day-Ahead Market
Ex-Post Spot Pricing
Transmission Losses
Bilateral Trading in United Kingdom
Electricity Market Reform in California

Market Design: Procurement of Ancillary Services
Reserve Market
AGC Market
Energy, Reserve, and AGC Co-Optimization Market
Compensation without Competition

Market Design: Common Cost Allocations
Transmission Costs
Unit Start-Up Cost
Peaking Cost Compensation
Transmission Rights

Microeconomic Analysis
Fundamentals of Non-Cooperative Game Theory
Game Models for Market Analysis
Market Power Analysis
Electricity Market Experiments

Price Forecast and Risk Management
Forecasting Electricity Prices
Managing Price Risk

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Deqiang Gan has been with the faculty of Zhejiang University since 2002. He visited the University of Hong Kong in 2004, 2005, and 2006. Deqiang worked for ISO New England, Inc. from 1998 to 2002. He held research positions in Ibaraki University, University of Central Florida, and Cornell University from 1994 to 1998. Deqiang received his Ph.D. in Electrical Engineering from Xian Jiaotong University, China, in 1994. He currently serves as an editor of European Transactions on Electric Power. His research interests are power system stability and market operations. Deqiang is a senior member of the IEEE.