ET2105 Electrical Power System Essentials

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Electricity Markets

• ET2105 Electrical Power System Essentials

Dr.ir. Pieter Schavemaker
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Concepts of The E-market

• Possible and desirable to separate the
  transportation from the thing transported
• Electricity ? product
• Transmission ? service

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E-market ? Other Markets

• Buyers and sellers agree on a price
• 1 Big differenceElectricity 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

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Organization
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PX Power eXchangeDAM Day Ahead Market
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Market Clearing
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APX
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The Single Electricity Market
Goal Maximize the social welfare in Europe
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Social Welfare
Social welfare benefits of the buyers -
costs of the sellers
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Increase the Social Welfareby Import and Export
DE export
Price
demand
supply
Quantity
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Increased Social Welfareby Import and Export
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If the Interconnector Capacity is not Sufficient
. . .
Price
DE
NL
Export
Import
Q ATC
Import
Export
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Congestion management