Electric Energy Market

A tantárgy neve magyarul / Name of the subject in Hungarian: Villamosenergia-piac

Last updated: 2019. január 4.

Budapest University of Technology and Economics
Faculty of Electrical Engineering and Informatics
Electrical Engineering, MSc degree program Electric Power Systems main specialization
Course ID Semester Assessment Credit Tantárgyfélév
VIVEMA05 2 2/1/0/v 4  
3. Course coordinator and department Dr. Divényi Dániel Péter,
4. Instructors
Dr. Dániel Péter Divényi

5. Required knowledge -
6. Pre-requisites
Kötelező:
NEM ( TárgyEredmény( "BMEVIVEM368" , "jegy" , _ ) >= 2
VAGY
TárgyEredmény("BMEVIVEM368", "FELVETEL", AktualisFelev()) > 0
VAGY
TárgyEredmény( "BMEVIVEMB05", "jegy" , _ ) >= 2
VAGY
TárgyEredmény("BMEVIVEMB05", "FELVETEL", AktualisFelev()) > 0)

A fenti forma a Neptun sajátja, ezen technikai okokból nem változtattunk.

A kötelező előtanulmányi rend az adott szak honlapján és képzési programjában található.

Ajánlott:
BMEVIVEMA01 - Power System Operation and Control
7. Objectives, learning outcomes and obtained knowledge This course is intended to provide basic theoretical and practical training on electricity markets that have already fully integrated with the operation of power systems. The course introduces the power market participants, stakeholders, their connections and interactions, along with market structures, the necessary legal, technical, economical aspects, investment incentive schemes as well as the tradable products and services connected to electricity supply. Through the examples cited from European power markets the obtained knowledge about the methods, principles and mechanisms used in electricity trading and throughout the power markets creates a possibility for the students to join the workforce of an electricity trading company or a market oriented supplier, network or system operator.
8. Synopsis
Nowadays, the whole power sector is driven by forces of economic competition. The course provides an overview the deregulated electricity market design, focusing on the European distinctive aspects, and the ongoing regulatory changes and challenges regarding the transforming power industry. Basics of power market regulation. economics and technical constraints are presented. Energy, reserve and cross-border network capacity trading and allocation is discussed in detail, along with the generation-side incentives like feed-in-tariff and capacity remuneration schemes. The students learn about the monopoly price regulation methods and the adjoining quality incentive schemes. Also, the course presents and insight to the daily routine of an electricity trader, the underlying economic effects and regulatory objectives, and risks associated. 

The course covers the aforementioned topics with the following lectures:

1. Electricity Market 101 - participants, regulations: Legal regulations, European energy packages, market participants and stakeholders, the role of network operators and regulatory authorities
2. Retail market -  Profiled and continuously metered consumers: Commercial contracts, load profiling and profiled consumers. Universal service, tariff systems.
Seminar Retail market - Metering and settlement process, annualized advance, profile differences Household tariffs (without system usage fees).
3. Wholesale market - Balancing groups: Balancing system balancing contracts. Power schedules: detailed structure, examples. Balancing energy: upward/downward, clearing price calculation, Balancing energy market
4. Wholesale market - Power exchanges: Day-ahead organized market, products, constraints. Price coupling of regions project, European power exchanges; Market clearing algorithm and its mathematical principles. AMPL. Power futures products. Intra-day market.
5. Seminar: Wholesale Market – Balancing: settlement, offers on the power exchange (simple, complex, block), clearing rules (AMPL), long-term trading, margining in trading
6. Generation: Energy market trends, renewable electricity support schemes (feed in tariff, feed in premium, green certificates), capacity remuneration and capacity market designs.
7. Seminar: Generation: History and operation of a feed-in-tariff based support scheme
8. Wholesale market – Risks and risk management
9. MID-TERM TEST
10. Transmission and distribution - load control: Ancillary services: definitions, procurement, commitment and settlement. European outlook, regional inter-TSO cooperations. Energy-reserve co-optimization.
11. Seminar: Transmission and distribution - load control: Examples for the Hungarian reserve market. Co-optimized reserve procurement.
12. Transmission and distribution - network constraints: Losses, network congestions, reactive power need, stability. EU vs. US market design: Nodal and zonal pricing. Market coupling as a capacity allocation method, inter-TSO compensation. Explicit and implicit, day-ahead and long-term cross-border capacity auctions.
13. Seminar: Transmission and distribution - network constraints: Capacity calculation methods (ATC, flow-based), market coupling examples.
14. Price regulation: Principles (monopoly regulation, history of price regulation, usage in liberalized electricity markets), dissemination of price regulation methods (cost-based, price cap, revenue cap, etc.)
15. Quality regulation: Technical standards, voltage dips, swells, and interruptions, asymmetry. Criteria used: SAIDI and SAIFI -definition, calculation, effect on network operators’ system usage fees

9. Method of instruction Lectures and seminariums.
10. Assessment
a) During the semester:
          Written test, 40% required to pass
 
Optional assignments (can improve exam results) 
Student presentation

b) During examination period:
Written (90 minute) exam with possible oral exam (in case the result of the written exam is at least pass (2) final mark can be upgraded by two marks)

Passed mid-term test and course signature are required to sign up for exams.

c) Final mark is calculated as:

Weighted average of test grade (20%) and exam grade (80%), if the exam is passed. In case of unsuccessful exam, the final mark is fail (1).

11. Recaps The midterm test can be repeated once during the semester.
12. Consultations Two times regularly during the semester and at times pre-arranged personally or via email.
13. References, textbooks and resources
1. Presentation slides and lecture notes on the department’s website
2. Open access, web based information on utilities, Eurostat Energy Statistics
3. Pérez-Arriaga, Ignacio J. (Ed.): Regulation of the Power Sector 2013, Springer

14. Required learning hours and assignment
Lectures42
Mid-term preparation for lectures and seminars13
Studying for mid-term test15
Homework assignment0
Learning pre-reading materials10
Preparation for exam40
Total120
15. Syllabus prepared by
Dr. Dániel Péter Divényi senior lecturer Electric Engineering Department
Péter Márk Sőrés assistant lecturer Electric Engineering Department