How Physical Electricity Markets work with a focus on the NEMS
Training Course
12 hours online
Electricity Traders
Commodity Traders
Risk Managers
Financial Analysts
Energy Market Analysts
Futures Traders
Portfolio Managers
Hedging Specialists
Trading Desk Managers
Energy Analysts
Market Risk Analysts
Investment Managers
Quantitative Analysts
Energy Consultants
Regulatory Compliance Officers
Learn about the purpose, the design, the mechanics and inner workings of physical power markets. Understand the mechanics through simple exercises of zonal and nodal pricing, as well as co-optimization of energy and reserve markets. Learn from various relevant examples from all over the world and understand established and emerging electricity markets. Understand the impact merchant markets have on utilities, their trading and risk controlling activities. Discuss developments like renewable integration, full retail competition, storage, electric vehicles and smart grid, and understand their impact on energy systems and electricity markets.
"Introduction to the electricity industry • Basic electric applications
• Key electric terms and laws
• Commercial electric systems and their key features
• Exercise: Zonal pricing
• Example: Singapore"
"Electricity market liberalization • Electricity economics
• Steps from a fully regulated to a fully liberalized market
• Design parameters for electricity markets
• Why regulation is still needed, and how it changes, with liberalization
• Designing a physical market for robustness and fairness
• Examples: Examples: Singapore, New Zealand"
Inner workings of a liberalized physical electricity market in the case of NEMS
• Stakeholders
• Trading in the physical market
• Ancillary services
• Examples: Singapore
Pricing and dispatch
• Energy – merit order, linear optimization and nodal pricing
• Reserve
• Regulation
• Co-optimization
• Load profiles and their commercial attractiveness
• Overview of international power markets
• Exercise: Assessing load attractiveness
• Exercise: Simple nodal pricing examples
• Exercise: Simple co-optimization example
Market settlement
• Market settlement process
• Invoicing
• Dispute resolution
• Credit risk, default procedures and collateral
Advanced market features and challenges on the demand side
• Retail competition
• Renewable generation
• Demand-side bidding
• Flexibility from interruptible load, demand response, electric vehicles, storage etc.
• Micro grid
• Smart grid
• Examples: Singapore, Germany, Belgium, Australia