Content
The module covers issues relating to the design of electricity markets with a high proportion of power generation using renewables. It also examines network-related fields and their interplay with regional generation and demand. Following a general introduction to the electricity sector, various special features of electricity as a good and their impact on the functioning of the electricity sector are derived analytically. In this context, the module examines the short-term pricing of a range of energy market products and necessary long-term incentives for system adequacy. The main methodology used is numerical modeling. The course teaches the open source programming language Julia and the use of open data platforms.
- Introduction: basics of energy economics, energy transformation, and motivation of quantitative methods
- Operation Research: recap of optimization and linear problems, graphic solution, simplex and standard form, duality and dual simplex
- Dispatch Problem: electricity markets, merit order, economic dispatch problem, renewable generation, heating and storages in (linear) economic dispatch problems
- Network: zonal markets, transport model, market prices, model prices (shadow prices/duality), nodal markets, linear power flow formulation, power transfer distribution factor (PTDF) matrix, locational marginal prices (LMPs)
- Unit Commitment: mixed integer problems, minimum generation, startup and shutdown costs
- Capacity Expansion: screening curves, overnight costs and annuity, greefield model of capacity expansion
- Introduction to the Julia programing language
