Transcript Electricity Markets ET2105 Electrical Power System Essentials Dr.ir. Pieter Schavemaker 22 May 2016

Electricity Markets
ET2105 Electrical Power System Essentials
Dr.ir. Pieter Schavemaker
22 May 2016
Delft
University of
Technology
Electrical Power System Essentials
Concepts of The E-market
• Possible and desirable to separate the transportation from the
thing transported
• Electricity  product
• Transmission  service
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E-market  Other Markets
• Buyers and sellers agree on a price
• 1 Big difference:
Electricity cannot be stored in large quantities  impact on
prices
• Factors that complicate the ‘product’
• Electricity cannot be labelled
• Power flows cannot be controlled by financial instruments
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Organization
system services
transmission & distribution
primary
energy
production
trade
import
consumption
export
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PX – Power eXchange
DAM – Day Ahead Market
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Price [Eur]
Market Clearing
90
80
70
60
MCP
50
40
30
20
10
0
0
50
100
150
MCV
200
250
300
Volume [MWh]
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APX
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The Single Electricity Market
Goal:
Maximize the social
welfare in Europe
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Social Welfare
Price
DE
Price
NL
supply
demand
PNL
demand
supply
PDE
QDE
Quantity
QNL
Quantity
Social welfare =
benefits of the buyers - costs of the sellers
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Increase the Social Welfare
by Import and Export
DE: export
Net export curve
Price
Price
demand
PDE*
supply
PDE
PDE
QDE
Quantity
Import
QDE*
Export
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Increased Social Welfare
by Import and Export
Price
NL
DE
P*
NL
Import
Export
Q*
Export
Import
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If the Interconnector Capacity is not
Sufficient . . .
Price
DE
PNL*
PDE*
NL
Import
Export
Q* = ATC
Export
Import
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Congestion management
congestion
management
non-market based
market based
implicit auction
zonal pricing
market coupling
explicit auctions
nodal pricing
market splitting
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