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Department of Electronic & Electrical Engineering, Unit Catalogue 2011/12

EE50200: Power markets and economics

Click here for further information Credits: 6
Click here for further information Level: Masters UG & PG (FHEQ level 7)
Click here for further information Period: Semester 1
Click here for further information Assessment: CW25EX75
Click here for further information Supplementary Assessment: Supplementary assessment information not currently available (this will be added shortly)
Click here for further information Requisites:
Click here for further information Description: Aims:
This module is designed to provide insight into the economics of power systems and how this influences the operation of electricity markets; it is grouped under the four areas of interest: 1. Industry infrastructure; 2. The cost chain; 3. Market operation; 4. Market development.

Learning Outcomes:
After successfully completing this unit, students should be able to: describe the infrastructure of the industry and the various structures that have been adopted to effect market operation and how they interact; undertake calculations involving the cost chain that contributes to end user prices, including the costs of conventional and renewable generation and the impact of emission restrictions; describe the basis for transmission and distribution costs and illustrate how these contribute to the charging structures and make up end-user prices; describe the operation of markets, including trading arrangements, price forecasting and cross- border trading plus the auctioning of inter-connector capacity; carry out investment appraisal and risk assessment; describe the techniques used to monitor performance and introduce improvement, including measures to address technological developments that might impact on market operation and development.

Application of the information, techniques and methods detailed in the unit material, to the proposal of, and the carrying through of, appropriate solutions to engineering problems concerned with power markets and economics. Taught, facilitated and tested.

Industry physical structure; introduction of competition; restructuring options; comparison of structures; market participants, mechanisms and operation; Basic generation energy costs � cost components; practical operating efficiencies; impact of utilisation on costs; comparison of generation costs; Alternative energy sources � competing sources; incentive schemes; the economics of renewable sources; Emissions � emission trading schemes (ETS); generation CO2 emissions; national allocation plans; Transmission � impact of transmission in markets; transmission charging; derivation of use of system charges; interconnection pricing; international practice; Distribution � cost of distribution; distribution tariffs; OPEX regulation; Capex regulation; End User Charges and Prices � end user energy prices; total end user prices; tariff development; Market Trading � trading arrangements; bilateral trading; balancing market; exchange trading; managing price risk; Market Analysis � modelling overview; predicting demand data; generation data; Ancillary Service Markets � ancillary service requirements reserve; market volume; procurement process; cost of providing services; Cross-Border Trading � governance; cross-border capacity; security; charging for wheeling; international trading; Investment Appraisal � analysis of options; plant costs; predicting revenue; evaluating risk; Market Performance � performance criteria; market shortcomings; performance assessment and improvement; Economics of Market Developments � generation developments; transmission and distribution grids; carbon capture and storage; market implications.
Click here for further informationProgramme availability:

EE50200 is Optional on the following programmes:

Department of Electronic & Electrical Engineering
NB. Programmes and units are subject to change at any time, in accordance with normal University procedures.