Electricity Markets
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Transcript of Electricity Markets
19 April 2023
DelftUniversity ofTechnology
Electrical Power System Essentials
ET2105 Electrical Power System EssentialsDr.ir. Pieter Schavemaker
Electricity Markets
27. Electricity Markets | 13
Electrical Power System Essentials ET2105
Concepts of The E-market
• Possible and desirable to separate the transportation from the thing transported
• Electricity product
• Transmission service
37. Electricity Markets | 13
Electrical Power System Essentials ET2105
E-market Other Markets
• Buyers and sellers agree on a price
• 1 Big difference:Electricity 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
47. Electricity Markets | 13
Electrical Power System Essentials ET2105
Organization
tradetrade
exportexportimportimport
primaryprimaryenergyenergy productionproduction
consumptionconsumption
transmission & distributiontransmission & distribution
system servicessystem services
57. Electricity Markets | 13
Electrical Power System Essentials ET2105
PX – Power eXchangeDAM – Day Ahead Market
67. Electricity Markets | 13
Electrical Power System Essentials ET2105
Market Clearing
0
10
20
30
40
50
60
70
80
90
0 50 100 150 200 250 300
Volume [MWh]
Pri
ce [
Eu
r]
MCV
MCP
87. Electricity Markets | 13
Electrical Power System Essentials ET2105
The Single Electricity Market
Goal:Maximize the socialwelfare in Europe
97. Electricity Markets | 13
Electrical Power System Essentials ET2105
Social Welfare
Quantity
QNL
Price
PNL
NL
demand
supply
Quantity
Price
PDE
DE
demand
supply
QDE
Social welfare =
benefits of the buyers - costs of the sellers
107. Electricity Markets | 13
Electrical Power System Essentials ET2105
Increase the Social Welfareby Import and Export
DE: export
Price
demand
supply
Quantity
PDE
QDE
PDE*
QDE*
Price
PDE
Export
Import
Net export curve
117. Electricity Markets | 13
Electrical Power System Essentials ET2105
Increased Social Welfareby Import and Export
Price
ExportImport
DE
NL
NL
ImportExport
P*
Q*
127. Electricity Markets | 13
Electrical Power System Essentials ET2105
If the Interconnector Capacity is not Sufficient . . .
Price
ExportImport Q* = ATC
DE
NL
ImportExport
PNL*
PDE*