logo-polimi
Loading...
Bibliographic resources
Bibliography mandatory
Bibliography not mandatory
Summary Teaching Assignment
Academic Year 2019/2020
School School of Industrial and Information Engineering
Course 052589 - ELECTRICITY MARKETS
Cfu 8.00 Type of Course Mono-Disciplinary Course
Lecturers: Titolare (Co-titolari) Bovo Cristian

Programme Track From (included) To (excluded) Course
Ing Ind - Inf (Mag.)(ord. 270) - MI (475) ELECTRICAL ENGINEERING - INGEGNERIA ELETTRICA*AZZZZ052589 - ELECTRICITY MARKETS

Goals

The course aims to provide a deep understanding regarding the liberalization process of the electricity sector and its evolution in a liberalized environment.

In the first part, tools to understand the process of liberalization of the electricity sector, the requirements and the conditions necessary for an efficient electricity market will be provided. Different market structure are compared and analyzed. Afterwards, models for price and power market analysis will be introduced.

In the second part, emphasis will be given to the European electricity market: the problem of the market coupling in Europe is analyzed and the evolution and the projects regarding the integration of the different market sections (day ahead electricity markets, intraday markets, and ancillary services markets) is analyzed.

Finally, starting from the liberalization of the Italian electricity market, due to the Bersani Decree, the complex framework that characterizes this market and its rules will be described and critically analyzed.

The subjects are organized in theoretical lessons and practical (numerical) lessons.

Then, a simulation of the pool market paradigm will be organized and the students (divided in teams) will assume the role of a generation company. Each team will have to define the strategy and will have to submit offers in the market. This simulation will be repeated several times to give the possibility to learn and understand the best strategy for its own generation company.


Expected learning outcomes

The course will allow the students to know (DdD1, DdD4):

  • what are the prerequisites for the liberalization of the electricity market;
  • what are the market structures in the electricity sector;
  • how the technical constraints (due to the generation plants and the electricity grid) influence the design of the electricity market;
  • what are the different approaches to represent the network in the market models;
  • the evolution of the market paradigms due to the penetration of the non-programmable renewable energy sources;
  • to evolution of the market coupling project in Europe;
  • the Cross-Border Redispatch Cost-Sharing problem among different Countries.

The practical (numerical) lessons of the course will allow the students to (DdD2, DdD4):

  • understand how it is possible to implement (from a mathematical point of view) an electricity market model;
  • apply the optimization theory and algorithms for modelling electricity markets;

Finally, the simulation of the pool market will allow the students to apply the theoretical knowledge to understand which are the factors that affect the strategic behavior of the market player in the day ahead electricity market section (DdD2).


Topics
  • Electrical systems management in liberalized markets environment: liberalization process from vertically integrated structures to liberalized markets, the players and their role.
  • Main electricity markets paradigms: bilateral contracts and pool market models.
  • Power electricity exchange (PX) and the role of the Transmission System Operator (TSO): electricity market models and congestion management. Transmission capacity value.
  • Ancillary Services and Ancillary Services Market: description of ancillary services and their management in special market (ancillary services markets).
  • The evolution of the ancillary services markets.
  • Capacity market.
  • Imperfect competition; market power and promotion of competition: tools for market power analysis, game theory. Strategic interaction between day-ahead market and the ancillary services markets.
  • The Italian spot electricity market (MPE: mercato a pronti): structure and rules. MGP (Mercato del Giorno Prima), MI (Mercato Infragiornaliero), MSD (Mercato dei Servizi di Dispacciamento) and MB (Mercato di Bilanciamento).
  • The Italian Forward Electricity Market (MTE: mercato a termine): characteristics and rules. Interaction with the spot market.
  • Market coupling project in Europe.

Pre-requisites

Ancillary services, reliability and security for electricity system, N and N-1 security criteria, Total Transfer Capacity (TTC) definition and calculation, primary and secondary frequency control, voltage control.


Assessment

After the end of the course, students participate to one of the available final examinations that consists on an oral test.

The oral part generally consists in 2 or 3 questions on all the topics covered by the course, including the subject of the practical (numerical) lessons.

Students should demonstrate full comprehension of the subjects and the usage of the appropriate technical language (DdD1, DdD2 and DdD4). 

 


Bibliography
Risorsa bibliografica facoltativaChris Harris, Electricity Markets: Pricing, Structures and Economics, Editore: John Wiley & Sons Ltd, Anno edizione: 2013, ISBN: 9780470011584 https://onlinelibrary.wiley.com/doi/book/10.1002/9781118673409
Risorsa bibliografica obbligatoriaAllen J. Wood, Bruce F. Wollenberg, Gerald B. Sheblé, Power Generation, Operation, and Control, 3rd Edition, Editore: Wiley, New York, Anno edizione: 2013, ISBN: 978-0-471-79055-6 https://www.wiley.com/en-us/Power+Generation%2C+Operation%2C+and+Control%2C+3rd+Edition-p-9780471790556

Software used
No software required

Learning format(s)
Type of didactic form Ore di attività svolte in aula
(hh:mm)
Ore di studio autonome
(hh:mm)
Lesson
52:00
78:00
Training
28:00
42:00
Computer Laboratory
0:00
0:00
Experimental Laboratory
0:00
0:00
Project Laboratory
0:00
0:00
Total 80:00 120:00

Information in English to support internationalization
Course offered in English
Study material/slides available in English
Textbook/Bibliography available in English
It is possible to take the examination in English
Support available in English
schedaincarico v. 1.10.0 / 1.10.0
Area Servizi ICT
15/07/2024