Electricity Markets de Chris Harris

Electricity Markets

Chris Harris

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.

Citește tot Restrânge

Cuprins

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.