The aim of the course is that the students learn methods and models for how the price is formed in an electricity market. The course comprises background information about possible ways to design an electricity market, impact from congestions, treatment of externalities such as methods to limit emissions, risk analysis and market power. Applied optimization is shown to be one suitable method to simulate market behaviour.
Information for research students about course offerings
Content and learning outcomes
Electricity pricing, congestion management, hydro power, market power, environmental issues, regulation market, financial derivatives, transmission tariffs, role of the TSO, capacity investments, investment dynamics.
Intended learning outcomes
After the course, the student should be able to
- describe the principles of how an electricity market can be organised,
- describe treatment of flexible load
- describe methods to handle congestion in power markets,
- describe methods for analyzing prices in markets with limited competition,
- describe basic methods for financial risk management in power markets,
- describe methods to handle externalities, such as environmental problems, in electricity markets,
- perform calculations of pricing in small systems with one of the above characteristics.
- analyze pricing in larger power systems with combinations of several of the above named characteristics.
- apply methods for analyzing the trade off between low prices and reliability in larger power systems,
- formulate market simulation problems with mathematical expressions,
- analyze investment dynamics in electricity markets,
- reflect on possible ways to design electricity markets.
Lectures, home assignments, 5 h exam, project assignments.
Literature and preparations
The course is intended for Ph.D. students in electric power systems, but can also be interesting for students from other fields of electrical engineering.
L. Söder “Electricity Market Analysis”.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
- EXA1 - Examination, 10.0 credits, grading scale: P, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
The project assignments are chosen by students in agreement with their supervisors and the examiner of the course.
Other requirements for final grade
- Approved home assignments.
- Passed the exam.
- Approved project assignments.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.
Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.Course web FEG3222