Professional Documents
Culture Documents
An overview
Pierre Pinson
2 February 2015
Learning objectives
Through this lecture, additional readings and video links, it is aimed for the students to
be able to:
Outline
Historical perspective
Historical perspective
A historical perspective
1980s
First ideas for liberalization of the electricity sector, and introduction of electricity market concepts in Chile (the Chicago boys)
1990
1991
1996
2000-2001
Deregulation in California
California electricity crisis!
In short: shortage of electricity supply, rise in prices, multiple blackouts, state of emergency, bankruptcies, investigation on Enrons
role
1991
1996
1998
2000
2002
2009
2009
2013
REGULATED
DEREGULATED
energy prices
transmission and distribution prices
Horizontal restructuring
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Organization: Monopoly
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The final consumers cannot really differentiate the origin of the product (as well as
its quality and nature)
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This is a simplified grid for the first synchronous zone of the Europan Transmission
Network (app. 1500 lines only)... The real one has more than 32.000 lines!
31761 - Renewables in Electricity Markets
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The same grid with power flowing as a function of renewable energy generation and
electric power consumption, in a future renewable-based power system....
31761 - Renewables in Electricity Markets
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Day-ahead (forward):
Maybe the most important market, where everyday supply and offer meet for every time
unit over the following day. Ex: Nord Pool Elspot for Scandinavia
Intra-day (adjustement):
It consists in a continuous trading platform, between day-ahead and balancing, allowing to
correct after new information is revealed (like plant outages or changes in wind power
generation). Ex: Nord Pool Elbas for Scandinavia (and further)
Balancing (regulation):
A market close to real-time operation, where the system operator is the main buyer/seller
(depending upon situation) of energy to ensure power system balance during operation. It
also acts as a penalization mechanism for those not respecting their supply/offer contracts.
Ex: Energinet.dk in Western and Eastern Denmark
31761 - Renewables in Electricity Markets
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The timeline
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Overall objectives:
harmonize European electricity markets and strengthen competition
improve liquidity, transparency and efficiency in the power markets across Europe
social welfare optimisation
In practice:
flow-based coupling of day-ahead markets
standardization of (also new) products for intra-day markets and new matching
algorithms
target model for balancing? co-existence with new intra-day solutions?
31761 - Renewables in Electricity Markets
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Should renewables (and demand) pay for the power fluctuations they induce?
What is an optimal market design (and offering strategies) if renewables are to
provide system services?
31761 - Renewables in Electricity Markets
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Unfortunately, these are research problems than cannot be covered in this course...
except for the sneak preview lectures on 11 May 2015
Besides, if you are interested, do not hesitate to ask!
31761 - Renewables in Electricity Markets
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Questions / discussion
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Either this afternoon, or before the next session on Monday 9 February 2015
Readings:
D. Kirschen, G. Strbac (2004). Fundamentals of Power System Economics, Chapter 1: Introduction
J.M. Morales et al. (2014). Integrating Renewables in Electricity Markets, Chapter 1: Introduction
R. Schleicher-Tappeser (2012) How renewables will change electricity markets in the next five years.
Energy Policy 48: 6475 (pdf)
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