Economy and Electricity Market, 5 hp

The course covers economy and electricity market and gives knowledge about the different economic processes related to the power system. Topics included in the course are:

• review of basic economic terms and calculations for investments in electricity production, energy storage and grids. The structure of the electricity market with different stake holders and different roles. Description of how deliveries of electricity are sold on fixed contracts and on the spot market and how price hedging can be done on the spot price.
• review of Nordpool and the markets and players that exist. Description of trading on the day ahead (D-1) and the intraday (same day). Balance responsibility, balance responsibility role and costs of imbalances. The New Nordic Balancing Model, NBM.
• the balancing process within the operating hour with ancillary services and remedial measures.
• structure of bidding zones, how pricing takes place within a bidding zone and how congestion income arises.
• description of the revenue framework and how the electricity network prices that may be set are regulated. Description of how electricity network tariffs are structured for production, consumption, energy storage for both companies and private individuals.