Electricity Markets, Summer Semester 2016
Table of Contents
- 1. Course Details
- 2. Course Books and Links
- 2.1. Books
- 2.2. Other sites/papers/dissertations
- 2.3. Electricity markets in the news/media
- 2.3.1. Decreasing electricity prices: Renewables or CO2 price or …. in Sweden and Germany
- 2.3.2. Nuclear power decomissioning and waste storage
- 2.3.3. Splitting Germany & Austria into different electricity price zones
- 2.3.4. Leaked German Climate Action Plan 2050
- 2.3.5. Electrifying Transport
- 2.3.6. Electricity Market Reform in Germany
- 2.3.7. 2000-2001 California Electricity Crisis
- 2.3.8. Flow-Based Market Coupling in Central and Western Europe
- 3. Course Lecture Notes
- 4. Course Exercise Sheets
- 5. Review of Marked Exam Papers
- 6. Programming examples
1 Course Details
FIAS Renewable Energy System and Network Analysis (FRESNA) group
Summer Semester 2016, University of Frankfurt
2 Course Books and Links
2.1 Books
The following books are recommended (roughly in order of usefulness):
- Daniel Kirschen and Goran Strbac, ``Fundamentals of Power System Economics,'' Wiley, 2004: This book covers the basics with lots of clear examples and isn't too heavy on theory. This course will broadly follow this book.
- D.R.~Biggar, M.R.~Hesamzadeh, ``The Economics of Electricity Markets,'' Wiley, 2014: This book has more detail on the optimisation theory, engineering background and coupling electricity markets with transmission networks.
- Steven Stoft, ``Power System Economics: Designing Markets for Electricity,'' Wiley, IEEE Press, 2002: This book has more of an economics focus and looks at real-world implementations of electricity markets.
- Joshua Adam Taylor, ``Convex Optimization of Power Systems,'' CUP, 2015: This book has its main focus on optimisation and the implementation of optimisation for concrete research problems related to power systems.
- J.M. Morales et al., ``Integrating Renewables in Electricity Markets,'' Springer, 2014: See the title.
2.2 Other sites/papers/dissertations
- Definitions of Terms of the Electric Utility Industry from VGB
- EEX
- BMWi: Strommarkt der Zukunft
- Phasenprüfer - Der Blog für Energiepolitik
- DIW Discussion Papers
- EWI Working Papers
- How the European day-ahead electricity market works - lecture notes from Bertrand Cornélusse, 2014
- Clean Restructuring: Design Elements for Low-Carbon Wholesale Markets and Beyond - NREL, 2016
2.3 Electricity markets in the news/media
- Press summary 18.04.2016
- Arte Video Die grosse Stromlüge (bis 28.05.2016 auf Arte+7)
2.3.1 Decreasing electricity prices: Renewables or CO2 price or …. in Sweden and Germany
2.3.2 Nuclear power decomissioning and waste storage
- Atomlasten, fair geteilt (28.04.2016)
- Die Atomkonzerne kaufen sich frei (27.04.2016)
- 24 Milliarden für die Atommüll-Lagerung (21.04.2016)
- Interne Marktanalyse: In EU fehlen mehr als 100 Milliarden Euro an Atomrückstellungen (10.02.2016)
- Atomkonzerne gegen "Ewigkeitshaftung" (25.11.2015)
- BMWi Gutachtliche Stellungnahme zur Bewertung der Rückstellungen im Kernenergiebereich
- BMWi Entwurf eines Gesetzes zur Nachhaftung für Rückbau- und Entsorgungskosten im Kernenergiebereich (02.09.2015)
- Atom-Rückstellungen von Eon und RWE in Gefahr (28.07.2015)
- Wikipedia: Nuclear power phase-out
2.3.3 Splitting Germany & Austria into different electricity price zones
- Skandinavier verärgert über verstopftes deutsches Stromnetz (FAZ, 04.05.2016)
- Bidding Zone Configuration Literature Review (Ofgem, 2014)
- Two Price Zones for the German Electricity Market: Market Implications and Distributional Effects (DIW Discussion Paper, 2015)
- Bedeutung von etablierten nationalen Gebotszonen für die Integration des europäischen Strommartks - ein Ansatz zur wohlfahrtsorientierten Beurteilung (Frontier Economics Report for BNetzA, October 2011)
- Optimale Marktgebietszuschnitte und ihre Bewertung im europäischen Stromhandel (PhD Thesis?, 2014)
- Inefficiencies in European congestion management proposals (Utilities Policy, 2004)
- Zonal Pricing in a Deregulated Electricity Market (Energy Policy, 2001)
- Nodal, uniform, or zonal pricing: distribution of economic surplus (IEEE, 2005)
- http://www.sciencedirect.com/science/article/pii/S0301421515300604
- http://www.econstor.eu/bitstream/10419/107425/1/81857965X.pdf
- Essays on the Economics of Congestion Management — Theory and Model-based Analysis for Central Western Europe (PhD, 2013)
2.3.4 Leaked German Climate Action Plan 2050
2.3.5 Electrifying Transport
Transport (air, sea, road, rail) was responsible for 164 million tonnes of CO2 in 2015, compared to around 300 million tonnes for electricity. Options for reducing CO2 emissions include electrification using batteries or hydrogen-powered-fuel-cell cars, where the hydrogen is produced by electrolysis using electricity.
In 2016 the German federal government and the auto industry announced subsidies for buyers of electric cars and investment in charging infrastructure. Buyers of purely electric cars will receive a premium of 4,000 euros, or 3,000 euros for hybrids – at a maximum list price of 60,000 euros
- Federal government decides on 4,000 euro buyer's premium for e-cars (CLEW, 27.04.2016)
- Gabriel: Gespräche mit der EU-Kommission zur Kaufprämie für Elektrofahrzeuge erfolgreich abgeschlossen (BMWi press announcement, 16.06.2016)
- Deutsche Post: Fahrzeugflotte wechselt komplett zu Elektro-Autos (Wirschaftswoche, 14.06.2016)
- Klimaschutzbeitrag des Verkehrs bis 2050 (UBA report, June 2016)
- Das Umweltministerium will ab 2030 nur noch emissionsfrei fahrende Neuwagen erlauben. (TAZ, June 2016)
2.3.6 Electricity Market Reform in Germany
Germany's new power market design (CLEW, 24.06.2016)
Weißbuch: Ein Strommarkt für die Energiewende (BMWi, Juli 2015)
Gabriel: Bundestag verabschiedet große Reform des Strommarktes und macht ihn fit für die Energiewende (BMWi, 24.06.2016)
2.3.7 2000-2001 California Electricity Crisis
2.3.8 Flow-Based Market Coupling in Central and Western Europe
http://utilitytool.casc.eu/Util - use this interface to download the PTDFs and RAMs for each hour of each day
3 Course Lecture Notes
Please email us if you find any errors in these slides; we will update them as soon as we find mistakes.
Lecture 1 Introduction (11.04.2016, updated 18.04.2016, source)
Lecture 2 Efficient Market Operation in the Short-Run (18.04.2016, updated 18.04.2016, source)
Lecture 3 Efficient Market Operation and KKT (25.04.2016, updated 27.04.2016, source)
Lecture 4 Representing Transmission Constraints (02.05.2016, updated 03.04.2016, source)
Lecture 5 Markets with Transmission Congestion (09.05.2016, source)
NB: No lecture or exercise class on 16.05.2016 because of Pfingsten public holiday!
Lecture 6 Markets with Transmission Congestion (23.05.2016, source)
Lecture 7 Generation Investment (30.05.2016, source)
Lecture 8 Renewables Subsidy in Germany (06.06.2016, updated 07.06.2016)
Lecture 9 Intertemporal Risk (13.06.2016)
Lecture 10 Market Power (20.06.2016)
Lecture 11 Interlocational Risk and Investment in Transmission (27.06.2016)
Lecture 12 Guest Lecture by Thorbjorn Vest Andersen (Vattenfall) on Flow-Based Market Coupling; Examples of Price Caps from Australia and Market Abuse from California (04.07.2016)
Lecture 13 Integrating Renewables, Balancing Markets, Other Ancillary Services, Other Flexibility Providers (11.07.2016)
Source LaTeX can be found by replacing the PDF file extension .pdf with .tex.
Graphics can be found in ./graphics/. Source code to generate the self-made graphics can be made available on request.
Unless otherwise stated the graphics and text is Copyright © Tom Brown and Mirko Schäfer 2016.
We hope the graphics borrowed from others have been attributed correctly; if not, drop a line to the authors and we will correct this.
The graphics and text for which no other attribution are given are licensed under a Creative Commons Attribution-ShareAlike 4.0 International Licence.
4 Course Exercise Sheets
Exercise Sheet 1 (11.04.2016)
Exercise Sheet 1 Solutions (18.04.2016, updated 01.07.2016)
Exercise Sheet 2 (25.04.2016)
Exercise Sheet 2 Solutions (02.05.2016)
Exercise Sheet 3 (23.05.2016, updated 07.06.2016)
Exercise Sheet 3 Solutions (07.06.2016, updated 26.07.2016)
Exercise Sheet 4 (06.06.2016, updated 16.06.2016)
Exercise Sheet 4 Solutions (13.06.2016, updated 26.07.2016)
Exercise Sheet 5 (20.06.2016, updated 28.06.2016)
Exercise Sheet 5 Solutions (27.06.2016, updated 28.06.2016)
Exercise Sheet 6 (04.07.2016)
Exercise Sheet 6 Solutions (11.07.2016, updated 12.07.2016)
5 Review of Marked Exam Papers
The Review of Marked Exam Papers for the exam on 01.08.2016 will take place at:
Date: Wednesday 31st August 2016
Time: 1000 - 1200
Place: Frankfurt Institute for Advanced Studies, Uni Campus Riedberg, Office 3|401 (Brown)
No registration is necessary.
6 Programming examples
Using python, pandas and pypsa.
6.1 Simple example of KKT with two generators behind a transmission line
emcourse-Exercises2.ipynb (02.05.2016)