Electricity Markets, Summer Semester 2016

Table of Contents

1 Course Details

Tom Brown, Mirko Schäfer

FIAS Renewable Energy System and Network Analysis (FRESNA) group

Summer Semester 2016, University of Frankfurt

Course on QIS/LSF

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.

2.3 Electricity markets in the news/media

2.3.1 Decreasing electricity prices: Renewables or CO2 price or …. in Sweden and Germany

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

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