Power Markets, Resources and Environment

This course introduces the fundamental principles and concepts of electricity markets, with particular emphasis on Norwegian and Nordic market solutions. It integrates the technical, economic, and optimization aspects of power systems and presents them with a focus on mathematical rigor. The course is designed for graduate-level students with a basic understanding of the electric power industry who wish to gain deeper insight into the functioning and design of electricity markets.

The curriculum covers a broad range of topics, including microeconomic foundations relevant to power markets, system operation, tariff structures, congestion management, optimal power flow, nodal pricing, flow-based market coupling, ancillary services, and environmental policies.

The pedagogical approach is to first discuss the electricity market clearing process in the absence of transmission constraints and then introduce transmission constraints and their implications. This approach will be extended by adding environmental policy to the established market clearing in the previous steps.

Knowledge:

After completing the course, the student will be able to recognize, analyze, and assess:

• How deregulated power markets work (understand the significance of the different power market mechanisms) and market behavior and price for different forms of competition
• Analyze the operation of electricity networks and their influence on market clearing.
• Assess tools and strategies for carbon emission reduction and their economic repercussions in power markets.

Skills:

Students will develop the ability to:

• Formulate market simulation problems with mathematical expressions and as an optimization problem
• Apply methods to manage transmission congestion effectively.
• Conduct optimal dispatch and power flow calculations using optimization techniques.

The course aims to enhance the following skills:

• Teamwork skills through interdisciplinary collaboration.
• Communication skills, enabling effective discourse with both specialists and laypersons through various forms of presentations and reports.

This course not only builds foundational knowledge but also equips students with practical skills and an understanding of the details involved in electricity market operations, preparing them for advanced roles in the energy sector.

Lectures, exercises, and project assignment. The course is given in English.