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Electricity Markets. ET2105 Electrical Power System Essentials. Dr.ir. Pieter Schavemaker. Concepts of The E-market. Possible and desirable to separate the transportation from the thing transported Electricity product Transmission service. E-market Other Markets.
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Electricity Markets ET2105 Electrical Power System Essentials Dr.ir. Pieter Schavemaker Electrical Power System Essentials
Concepts of The E-market • Possible and desirable to separate the transportation from the thing transported • Electricity product • Transmission service Electrical Power System Essentials
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 Electrical Power System Essentials
Organization system services transmission & distribution primary energy production consumption trade import export Electrical Power System Essentials
PX – Power eXchangeDAM – Day Ahead Market Electrical Power System Essentials
Market Clearing MCP MCV Electrical Power System Essentials
APX Electrical Power System Essentials
The Single Electricity Market Goal: Maximize the social welfare in Europe Electrical Power System Essentials
Social Welfare DE NL Price Price supply demand PNL demand supply PDE QDE Quantity QNL Quantity Social welfare = benefits of the buyers - costs of the sellers Electrical Power System Essentials
Increase the Social Welfareby Import and Export Net export curve Price PDE* PDE PDE Import QDE* Export QDE DE: export Price demand supply Quantity Electrical Power System Essentials
Increased Social Welfareby Import and Export Price NL DE P* NL Import Q* Export Export Import Electrical Power System Essentials
If the Interconnector Capacity is not Sufficient . . . PNL* PDE* Price DE NL Import Export Q* = ATC Export Import Electrical Power System Essentials
Congestion management Electrical Power System Essentials