The course is aimed at introducing some basic concepts on power system economics, including the reference market models and metrics along with some traditional and emerging methodologies in the simulation of electricity markets. The course discusses basic economic principles and their applications to electricity markets, considering the specificities of electricity as a commodity and the very peculiar impacts of the power network under which the market runs. Reference market arrangements and models will be introduced to describe conceptually electricity markets. Network impacts on the market performance, biding strategies as well as congestion management methods will be discussed. Approaches for electricity markets modelling and simulation, under network constraints, will be presented. For the pool electricity markets, they would be based on the concept of market equilibrium under the framework of game theory; while in the case of bilateral electricity markets we will consider evolutionary equilibrium under the framework of dynamic multi-agent systems. Applications and exercises related to simple cases will be proposed and discussed.

nessuno

L0 - Introduction to the course: Concepts and framework for (electric) energy - Structure of power systems - EU objectives for energy - Energy sustainability - Power systems security - Competition in electricity industry - Course programme L1- Electricity as a form of energy - comparison with other form of energy - world and EU outlook - basic features of electricity - power and energy in electricity L2 – Microeconomics - Definitions of economics - Road map of economics and challenges - Basic economic laws - Definitions of microeconomics terms - Objectives of a firm - Demand elasticity - Equilibrium point and associate economic metrics - Market types L3 - Markets for electricity - Monopoly vs. Competitive markets: reasons for the competition in the electricity markets - Specificity of electricity as a commodity - Players, markets, products - Reference market models: pool vs. Bilateral - Market equilibrium and market performance - Market clearing without network constraints - Network unconstrained market clearing as an optimization problem L4 - Market power analysis in the electricity market - Definition of market power - Causes and consequences of market power - Classic indices for market power evaluation L5 - Network impacts on electricity market - Power system operation and network impacts - Costs classification - Pricing the usage of the network - Embedded cost allocation - Loss allocation methods - Congestion in power systems and its impacts - Congestion management methods - Market equilibrium as network constrained optimization L6 - Basic game theory and its applications to the network constrained electricity markets modelling - Historical background - Basic elements of a game - Classification of games - Representation of games - Informative context - Game equilibrium - Game with uncertain information - Approaches for finding the equilibrium - Key aspects in game theory application to electricity markets - Network unconstrained game theory model: Medium run market simulator - Analysis of market power with game theory under network constraints L7 - Alternative approaches for electricity markets simulation - Shortcomings, problems and concerns on game theory - Complex network (CN) - Bilateral trading modelling - Pairwise stable network based bilateral trading model - An application: assess the incomplete and imperfect information impacts - Comparison of regulations for network congestion - Multi agent systems (MAS) - Multi-agent based simulation applications - Building up simulation tool - Preliminary case studies - Market based control

In presenza

Presentazione orale

P.D.2-2 - Giugno

• Monday May 15 2023 from 9:00 to 13:00 - classroom 2M (Via Boggio) • Tuesday May 16 2023 from 13:30 to 17:30 - classroom 2D • Wednesday May 17 2023 from 13:30 to 16:00 - classroom 5B and from 16:00 to 17:30 - classroom 11 • Thursday May 18 2023 from 14:30 to 16:00 - classroom 8 and from 16:00 to 18:30 - classroom 4