Electricity Markets: Pricing, Structures and Economics

Overview

Over the last three decades, the global expectations for abundant, cheap and reliable energy have driven the growth in demand, and this is challenging the ability to cheaply exploit the accessible energy sources, and to minimise environmental pressure. At the same time, in concert with similar changes in other industries, deregulation and privatisation have continued apace.

To enable them to contend with the daily process of generation, dispatch and supply, the electricity ...

See more details below
Other sellers (Hardcover)
  • All (9) from $67.85   
  • New (3) from $83.95   
  • Used (6) from $67.85   

Overview

Over the last three decades, the global expectations for abundant, cheap and reliable energy have driven the growth in demand, and this is challenging the ability to cheaply exploit the accessible energy sources, and to minimise environmental pressure. At the same time, in concert with similar changes in other industries, deregulation and privatisation have continued apace.

To enable them to contend with the daily process of generation, dispatch and supply, the electricity markets have risen to new levels of sophistication and complexity. Continued advances are required to effectively contend with issues such as demand management, environmental efficiency and security of supply. In addition, policy makers and regulators have a commitment to underwrite the performance of the industry model, and to intervene as necessary in structures, instruments and conditions.

The relationship between policy objectives, free markets, and the technicalities of electricity production, network flow, supply and consumption, is not a simple one.  In this context the book relates electricity market structures, economics for electricity, and derivative pricing of electricity. It is intended as a companion for all those with an interest in the electricity supply industry, including participants, traders, students, stakeholders, and policy makers and implementers.

Read More Show Less

What People Are Saying

From the Publisher
"The author presents a thorough description of the different market models and a perfect view of the modern competitive electricity sector, living and permanently changing."
Vidmantas Jankauskas, Chairman, ERRA (Energy Regulators Regional Association)
Read More Show Less

Product Details

  • ISBN-13: 9780470011584
  • Publisher: Wiley
  • Publication date: 6/5/2006
  • Series: Wiley Finance Series , #328
  • Edition number: 1
  • Pages: 542
  • Product dimensions: 6.95 (w) x 9.92 (h) x 1.41 (d)

Meet the Author

CHRIS HARRIS is head of industry, networks and agreements in the retail division of RWE npower in the UK and has held senior positions in the generation and trading sectors of the Electricity Supply Industry. Previously he was a quantitative analyst, managing director of global derivative trading, and director of marketing in the capital markets. He has advised utilities in different parts of the world in the organisation and operation of their businesses, to align to, and optimise in, the structure of their respective electricity markets.

Read More Show Less

Read an Excerpt

Click to read or download

Read More Show Less

Table of Contents

Preface.

Acknowledgments.

Introduction.

1. The Basics.

1.1 How electricity works.

1.2 Early development of the Electricity Supply Industry (ESI).

1.3 The lifecycle of electric power.

1.4 Development, structure, coordination, legislation of the ESI.

1.5 New ownership structure.

1.6 Selected country examples.

2. Structure, Operation and Management of the Electricity Supply Chain.

2.1 Energy source.

2.2 Power generation.

2.3 High voltage transmission, network operation, system operation.

2.4 Distribution.

2.5 Metering.

2.6 Supply.

3. Policy – Issues, Priorities. Stakeholders, Influencers.

3.1 Agendas and policy formation.

3.2 Policy issues and drivers.

3.3 Policy outcomes and instruments.

3.4 Energy policies.

3.5 Framework.

3.6 Domestic institutional players.

3.7 The role and influence of international players.

4. Liberalisation, Deregulation and Regulation.

4.1 The liberalisation paradigm.

4.2 Steps.

4.3 Conditions for reform.

4.4 The role of the state.

4.5 Measures of liberalisation and deregulation.

4.6 Regulation.

4.7 Regulator.

4.8 Industry key performance indicators.

5. Market Structures for Electricity.

5.1 The basics of plant dispatch.

5.2 The centrally managed model.

5.3 The single buyer.

5.4 The pool model.

5.5 The bilateral model.

5.6 Imbalance and balancing.

5.7 Reserve contracts.

5.8 Wholesale markets.

5.9 Power exchanges

5.10 Advanced pool markets.

6. Power Capacity.

6.1 The definition of capacity.

6.2 Requirements for capacity.

6.3 The basic economics of provision of capacity and reserve by generators.

6.4 Modelling the capability of generation capacity. 

6.5 Modelling capacity capability from the consumer side.

6.6 Commercial mechanisms – the generator perspective.

6.7 Capacity provision – the supplier perspective.

6.8 Capacity provision – the network operator’s perspective.

6.9 The system operator’s perspective.

6.10 Capacity facilitation – contractual instruments.

6.11 Use of options to convey probability information.

6.12 Effect of price caps on capacity and prices.

7. Location.

7.1 Infrastructure costs to be recovered.

7.2 Counterparties for payment and receipt.

7.3 Basic charging elements for location related charging.

7.4 Models for designation of electrical location.

7.5 Nodal energy prices, virtual transmission and nodal market contracts.

7.6 The energy complex.

7.7 Environmental borders.

8. Environment, Amenity, Corporate Responsibility.

8.1 Environmental pressure.

8.2 Definitions.

8.3 The policy debate.

8.4 Regulation and incentive for restricting emissions and other impacts.

8.5 Other policy tools for environmental enhancement.

8.6 Fuel labelling and power content labelling.

8.7 The cost of environmental enhancement.

8.8 Valuation of environmental factors.

8.9 Corporate responsibility.

8.10 The environmental impact of consumption.

9. Price and Derivatives Modelling.

9.1 Price processes and distributions.

9.2 Volatility modelling.

9.3 Correlation modeling.

9.4 Pricing electricity derivatives.

9.5 Establishing fundamental relationships.

9.6 Market completeness.

9.7 Emission permit prices.

9.8 Network price volatility.

10. Economic Principles in Relation to the ESI.

10.1 Basic economic principles in the ESI context.

10.2 Optimal pricing by asset owners.

10.3 Regulated prices.

10.4 Taxes and subsidies.

10.5 Games, interaction and behaviour.

10.6 Environmental economics.

10.7 Market failure.

10.8 Shocks.

10.9 The political economics of liberalisation.

11. Financial Modelling of Power Plant.

11.1 Power plant financial model.

11.2 The baseload contract.

11.3 The planned flexibility contract.

11.4 The vanilla option contract.

11.5 Extra flexibility.

11.6 Finance and hedging.

11.7 Accounting.

12. Security of Supply.

12.1 Supply chain.

12.2 Reserve margin.

12.3 The responsibility for security of supply.

Appendix.

A.1 Plant life usage.

A.2 Power plant failure and physical risk.

A.3 Reactive power.

A.4 Direct current load flow modeling.

References.

Index.

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)