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Economy and Electricity Market, 5 Higher education credits

Ekonomi och elmarknad, 5 Högskolepoäng

Established: 2024-02-15

Established by: Department of Engineering Science

Applies from: H25

Learning outcomes

After completing the course, the student should be able to:

Knowledge and understanding

• explain the structure of the electricity market.
• explain different economic expressions and calculations for investments.
• explain the meaning of different bidding zones.
• explain how electricity is traded partly on fixed contracts and partly on the spot market (day ahead) and intraday.
• explain how trading and pricing on the spot market takes place from different production units.
• explain the balancing market and the role of balance responsible.
• explain trading of different types of ancillary services such as frequency control.
• explain how the revenue framework regulates how electricity network tariffs may be set.
• explain how electricity network tariffs are set for different customer categories.

Competence and skills

• calculate and analyze revenues from electricity production based on production and the chosen type of contract.
• analyze the impact of bidding zones on the price of electricity.
• calculate and analyze revenue from ancillary services and remedial measures.
• calculate and analyze how different investments in the electricity grid affect the revenue framework.
• calculate how the quality of supply in the electricity grid affects the revenue framework.

Judgement and approach

• argue and motivate how the electricity production from different production units should be sold and bid into the market.
• argue and justify for bid strategy for ancillary services and remedial measures.
• argue and motivate for how electricity network investments should be prioritized based on the revenue framework in order to maximize the electricity network company's profit.

Entry requirements

Bachelor's degree with a major in Electrical Engineering or equivalent. The first-cycle program shall include at least 3 credits in programming and 15 credits in mathematics. English 6.

You also need approved result from the following course/courses: EKS700-Electric Power System and ELE700-Electricity Production and Energy Storage, or the equivalent.

The forms of assessment of student performance

Individual written assignment. Oral presentation in group.

Course contents

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.

Other regulations

Course grading: F/Fx/E/D/C/B/A - Insufficient, Insufficient- more work required before the credit can be awarded, Sufficient, Satisfactory, Good, Very Good, Excellent

Course language: The teaching is conducted in English.

General rules pertaining to examination at University West are available at www.hv.se.

If the student has a decision/recommendation on special support due to disability, the examiner has the right to examine the student in a customized examination form.

Cycle

Second cycle

Progressive specialization

A1F - second cycle, has second-cycle course/s as entry requirements

Main field of study

Electrical Engineering