We start our description of electricity markets by concentrating on so-called “spot” markets, as for the example of the day-ahead electricity markets we have in Europe. For that, we will go through
- biliateral contracts and electricity pools
- the formulation of market-clearing as an optimization problem
- prices and settlement
- zonal and network aspects
- the impact of regulation and support schemes
As additional material, please start with the video interview of Klaus Skytte, who was the head of the Energy Economics and Regulation group at DTU, Department of Management Engineering, and now the Director of Nordic Energy Research. In this video, we discuss the importance of electricity markets and regulation in the energy transition.
The module is composed of a set of video lectures. The module introduction gives an overview of the theme and topics to be covered. The lecture slides are also made available.