Examination arrangement

Course content

This course covers the principles and concepts of electricity markets, emphasizing Norwegian/Nordic solutions. It explores technical aspects of power systems, optimization, and economics, all presented with a strong emphasis on mathematical rigour. The course is tailored for graduate-level learners with a foundational understanding of the electric industry who seek a more in-depth understanding of the intricacies of electricity market operations.

The course encompasses a wide array of topics, providing background knowledge on microeconomic fundamentals relevant to power markets, system operation, tariff structures, congestion management, optimal power flow, nodal pricing, flow-based market coupling, ancillary services, and environmental policies.

Learning outcome

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 recognise, analyse, and assess:

• How deregulated power markets work (understand the significance of the different power market mechanisms) and market behaviour and price for different forms of competition
• How the electricity network operates and their impacts on electricity market clearing
• Familiar with the tools to reduce carbon emissions and their economic impacts on the power markets

Skills:

After completing this course, the student will be able to:

• Formulate market simulation problems with mathematical expressions and as an optimization problem
• Describe methods to handle transmission congestion in power markets
• Frame the formulation of optimal dispatch and the execution of optimal power flow calculations as an optimization problem.

The candidate is expected to enhance:

• Skills in cooperation and interdisciplinary collaboration
• Ability to communicate effectively to professionals and non-specialists alike through reports and presentations

Learning methods and activities

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

Compulsory assignments

• Assignment 1
• Assignment 2
• Assignment 3
• Assignment 4
• Assignment 5
• Assignment 6

Further on evaluation

To be eligible for the final evaluation, 6 assignments must be approved out of 9 assignments. Additionally, it is compulsory to secure approval for at least one assignment from the set of assignments 7 through 9.

The final evaluation will be based on the project assignment (counting 100%) based on % fulfilment. Final grading will be from A to F. If failed in the project assignment, the student should resubmit an improved project in a re-sit submission. In the case that the student receives a F/Fail as a final grade after both ordinary assessment and re-sit, then the student must retake the course in its entirety. Submitted work that counts towards the final grade will also have to be retaken.

Recommended previous knowledge

TET4155 Infrastructure for Energy Transmission and Distribution TET4135 Energy system planning and operation or similar.

Course materials

Textbook and additional material provided during the course. More information is provided at the start of the course.

Credit reductions