Power Markets and Economics: Energy Costs, Trading, Emissions

It is now almost twenty years since liberalisation and the introduction of competition was proposed for electricity utilities. Some form of restructuring has been widely adopted around the world to suit local objectives. The industry now faces new challenges associated with global warming, rising prices and escalating energy demand from developing countries like China and India. The industry will have to cope with; managing emissions; managing variable energy sources like wind, dev eloping clean coal technology; accommodating distributed generation and new nuclear stations and managing the impact of these developments on the distribution and transmission networks. It is now necessary to consider how the various market structures that were adopted have performed and how they will address some of these new issues and what further changes might be necessary.
This volume presents an all–inclusive analysis of the electricity market structures that have been adopted around the world and how they are performing. It provides an up–to–date analysis of the cost of competing technologies, the operation of energy and ancillary service markets and the impact of renewable sources and emission restrictions. It takes a forward look at likely future developments necessary to cope with the new emerging issues.

Part One introduces industry infrastructure, analysing state utilities, the motives behind liberalisation and the resulting structures.
Part Two considers generation costs, including renewable generation costs, and investigates the cost of restricting emissions as well as transmission and distribution costs.
Part Three discusses market operation, describing how costs affect the organisation of power generation. It covers trading arrangements, ancillary services, international trading and investment.
Part Four looks to future markets and technological developments that will shape the industry through the next twenty years . This includes the appraisal of investment opportunities for global power companies and implications for market performance.

Written by an internationally renowned consultant engineer, this book is full of expert insight and balances fundamental methodology and academic theory with practical information and diverse worked examples.
This is an excellent reference on the topic for power system engineers, regulators, banks, investors, and government energy agencies. With its many worked examples, it is also a brilliant tutorial accessible for postgraduates and senior undergraduates in electrical and power engineering.


Spis treści:
Contents
Foreword
Preface
Part One Industry Infrastructure
Chapter 1 Approach to Restructuring
1.1 Introduction
1.2 Industry Physical Structure
1.3 Introduction of Competition
1.4 Restructuring Options
1.5 Comparison of Structures
1.6 Summary
Chapter 2 Market Mechanisms
2.1 Introduction
2.2 Market Participants
2.3 Market Mechanisms
2.4 Market Implementation
2.5 Price Analysis
2.6 Summary
Part Two The Cost Chain
Chapter 3 Basic Generation Energy Costs
3.1 Introduction
3.2 Cost Components
3.3 Practical Operating Efficiencies
3.4 Impact of Utilisation on Costs
3.5 Comparison of Generation Costs
3.6 International Comparisons
3.7 Summary
Chapter 4 Alternative Energy Sources
4.1 Introduction
4.2 Competing Sources
4.3 Current Production Europe
4.4 Incentive Schemes
4.5 Market Pricing
4.6 The Economics of Alternative Sources
4.7 Comparisons
4.8 Summary
Chapter 5 Emissions
5.1 Introduction
5.2 Emission Trading Schemes (ETS)
5.3 Large Combustion Plant Directive (LCPD)
5.4 Generation CO2 Emissions
5.5 Production Costs
5.6 National Allocation Plans
5.7 Market Operation
5.8 Impact of Capacity Mix
5.9 International Approach
5.10 Summary
Chapter 6 Transmission
6.1 Introduct ion
6.2 Impact of Transmission Constraints in Markets
6.3 Transmission Charging
6.4 Derivation of Use of System Charges
6.5 International Tariff Comparisons
6.6 Transmission Investment
6.7 Interconnection Investment Appraisal
6.8 International Practice
6.9 Summary
Chapter 7 Distribution
7.1 Introduction
7.2 Market Status
7.3 Commercial Arrangements
7.4 Metering and Balancing
7.5 Cost of Distribution
7.6 Distribution Tariffs
7.7 OPEX Regulation
7.8 Capex Regulation
7.9 Business Risk
7.10 Distributed Generation
7.11 Summary
Chapter 8 End User Charges and Prices
8.1 Introduction
8.2 Price Comparisons
8.3 End user Energy Prices
8.4 Total End User Prices
8.5 Tariff Development
8.6 Customer Switching
8.7 Summary
Part Three Market Operation
Chapter 9 Market Trading
9.1 Introduction
9.2 European Markets
9.3 Developing Markets – China
9.4 Market Power
9.5 Trading Arrangements
9.6 Bilateral Trading
9.7 Balancing Market
9.8 Exchange Trading
9.9 Supplier Risk
9.10 Generation Risk
9.11 Market Interaction
9.12 Arbitrage Spark Spread
9.13 Summary
Chapter 10 Market Analysis
10.1 Introduction
10.2 Modelling Overview
10.3 Dispatch Market Simulation
10.4 Load Duration Model
10.5 Hydro Generation
10.6 Interconnection Modelling
10.7 Predicting Demand Data
10.8 Generation data
10.9 Calculations
10.10 Price Duration Curve
10.11 Statistical Forecasting
10.12 Predicting New Entry
10.13 Summary
Chapter 11 Ancillary Service Markets
11.1 Introduction
11.2 Ancillary Service Requirements
11.3 Market Volume
11.4 Procurement Process
11.5 Cost of Providing Services
11.6 Predicting Revenues
11.7 Summary
Chapter 12 Cross–border Trading
12.1 Introduction
12.2 Governance
12.3 Cross–border Capacity
12.4 New Investment
12.5 Managing Operation
12.6 Capacity Auctions
12.7 Security
12.8 Charging for Wheeling
12.9 International Trading Development
12.10 Summary
Chapter 13 Investment Appraisal
13.1 Introduction
13.2 Overall Analysis
13.3 Analysis of Options
13.4 Plant Costs
13.5 Predicting Revenue
13.6 Bidding/Contracting Strategy
13.7 Evaluating Risk
13.8 Summary
Part Four Market Development
Chapter 14 Market Performance
14.1 Introduction
14.2 Performance Criteria
14.3 Market Shortcomings
14.4 Performance Assessment
14.5 Performance Improvement
14.6 Summary
Chapter 15 Market Developments
15.1 Introduction
15.2 Generation Developments
15.3 Future Plant Mix
15.4 Transmission and Distribution Grids
15.5 Carbon Capture and Storage
15.6 Market Implications
15.7 Summary
Chapter 16 Long–term Scenarios
16.1 Introduction
16.2 Emissions
16.3 Alternative Energy Sources
16.4 The Nuclear Option
16.5 Fuel Prices
16.6 Fuel Supply Security
16.7 System Security
16.8 Clean Coal Technology
16.9 Network Developments
16.10 International Commodity and Freight Markets
16.11 Competition
16.12 Conclusions
Glossary
References
Appendix Conversion Tables
Index


Nota biograficzna:
From the author:
I have specialised in power system development and economics for the last 40 years having worked for a distribution company and as a senior manager with a generator (CEGB), a transmission company (NGC) and a manufacturer (ABB). Prior to liberalisation I worked on the development of algorithms to optimise system planning and operation which led to my playing a lead role in the restructuring of the UK power sector in 1990. In 1998 I set up as an independent consultant with a company called ‘Electricity Market Services Ltd’ and published a book on early experiences with Wiley called ‘Electricity Markets’. Since then I have worked on projects throughout the world. I have advised government