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EE30197: Power markets and economics

Follow this link for further information on academic years Academic Year: 2013/4
Further information on owning departmentsOwning Department/School: Department of Electronic & Electrical Engineering
Further information on credits Credits: 6
Further information on unit levels Level: Honours (FHEQ level 6)
Further information on teaching periods Period: Semester 1
Further information on unit assessment Assessment: EX 100%
Further information on supplementary assessment Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Further information on requisites Requisites:
Further information on descriptions 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 simple 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 basic 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 some of the techniques used to monitor performance and introduce improvement, including some 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.
Further information on programme availabilityProgramme availability:

EE30197 is Optional on the following programmes:

Department of Electronic & Electrical Engineering
  • UEEE-AFB10 : BEng Electrical and Electronic Engineering (Full-time) - Year 3
  • UEEE-AKB10 : BEng Electrical and Electronic Engineering (Full-time with Thick Sandwich Placement) - Year 4
  • UEEE-AFB01 : BEng (hons) Electrical and Electronic Engineering (Full-time) - Year 3
  • UEEE-AKB01 : BEng (hons) Electrical and Electronic Engineering (Full-time with Thick Sandwich Placement) - Year 4
  • UEEE-AFB12 : BEng (hons) Electrical Power Engineering (Full-time) - Year 3
  • UEEE-AKB12 : BEng (hons) Electrical Power Engineering (Full-time with Thick Sandwich Placement) - Year 4
  • UEEE-AFM01 : MEng (hons) Electrical and Electronic Engineering (Full-time) - Year 3
  • UEEE-AKM01 : MEng (hons) Electrical and Electronic Engineering (Full-time with Thick Sandwich Placement) - Year 4
  • UEEE-AFM12 : MEng (hons) Electrical Power Engineering (Full-time) - Year 3
  • UEEE-AKM12 : MEng (hons) Electrical Power Engineering (Full-time with Thick Sandwich Placement) - Year 4

* This unit catalogue is applicable for the 2013/4 academic year only. Students continuing their studies into 2014/15 and beyond should not assume that this unit will be available in future years in the format displayed here for 2013/14.
* Programmes and units are subject to change at any time, in accordance with normal University procedures.
* Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.