Fundamentals of Power System Economics (eBook)

Daniel Kirschen; Daniel Kirschen joined the University of Washington in 2011 after spending 16 years at the University of Manchester - previously UMIST - where he was head of the Electrical Energy and Power Systems research group.

Preface.

1. Introduction.

1. Why Competition?

2. Dramatis Personae.

3. Models of Competition.

4. Open Questions.

5. Further Reading.

6. Problems.

2. Basic Concepts from Economics.

1. Introduction.

2. Fundamentals of Markets.

3. Concepts from the Theory of the Firm.

4. Types of Markets.

5. Markets with Imperfect Competition.

6. Further Reading.

7. Problems.

3. Markets for Electrical Energy.

1. Introduction.

2. What is the Difference between a Megawatt-hour and a Barrel
of Oil?

3. The Need for a Managed Spot Market.

4. Open Electrical Energy Markets.

5. The Managed Spot Market.

6. The Settlement Process.

7. Further Reading.

8. Problems.

4. Participating in Markets for Electrical Energy.

1. Introduction.

2. The Consumer's Perspective.

3. The Producer's Perspective.

4. Perspective of Plants with Very Low Marginal Costs.

5. The Hybrid Participant's Perspective.

6. Further Reading.

7. Problems.

5. System Security and Ancillary Services.

1. Introduction.

2. Describing the needs.

3. Obtaining Ancillary Services.

4. Buying Ancillary Services.

5. Selling Ancillary Services.

6. Further Reading.

7. Problems.

6. Transmission Networks and Electricity Markets.

1. Introduction.

2. Decentralized Trading over a Transmission Network.

3. Centralized Trading over a Transmission Network.

4. Further Reading.

5. Problems.

7. Investing in Generation.

1. Introduction.

2. Generation Capacity from an Investor's Perspective.

3. Generation Capacity from a Customer's Perspective.

4. Further Reading.

5. Problems.

8. Investing in Transmission.

1. Introduction.

2. The Nature of the Transmission Business.

3. Cost-based Transmission Expansion.

4. Value-based Transmission Expansion.

5. Further Reading.

6. Problems.

Appendix: Answers to Selected Problems.

Abbreviations and Acronyms.

Index.

"...this is an interesting book that can help practicing
electrical engineers and understand the basic economics behind the
competitive electricity markets." (IEEE Power & Energy
Magazine, July/August 2006)

"Kirschen and Strbac have written an excellent textbook on this
important area ... rightly emphasizes the broad principles
underlying all the main electricity markets around the world."
(International Journal of Electrical Engineering Education,
42:3, 2006)