Power System Economics: Designing Markets for Electricity

An Introduction to the Fundamental Economics of Power Market Design and Analysis

Power System Economics is the first systematic presentation of power-market design principles from economic theory to market architecture. The approach is pragmatic, and the discussion illustrates economic and engineering fundamentals with simple examples. The volume breaks new ground in its analysis of price spikes, market-based unit commitment, and the prediction of market power.

Power System Economics includes five parts. Part 1 introduces key economic, engineering, and market design concepts. Part 2 explains how short-run reliability policies determine long-run average installed capacity and reliability. Part 3 examines classic designs for day-ahead and real-time markets. Part 4 covers market power, and Part 5 covers the effect of networks on prices. Topics include:

• How marginal-cost prices cover fixed costs
• Fundamentals of auction design
• The value of lost load (VOLL) as a price cap: theory versus practice
• Price limits, price spikes, investment, and reliability
• Standard market designs, including PJM
• Power pools versus power exchanges
• Market power fallacies and the HHI
• Losses pricing and congestion pricing

 

《電力市場設計與分析的基本經濟學介紹》

電力系統經濟學是首部從經濟理論到市場架構的電力市場設計原則的系統性介紹。這種方法是實用的，並且通過簡單的例子說明了經濟和工程基礎。該書在分析價格飆升、基於市場的單元承諾和市場力量預測方面開創了新的領域。

《電力系統經濟學》分為五個部分。第一部分介紹了關鍵的經濟、工程和市場設計概念。第二部分解釋了短期可靠性政策如何決定長期平均裝機容量和可靠性。第三部分探討了日前和實時市場的經典設計。第四部分涵蓋了市場力量，第五部分涵蓋了網絡對價格的影響。主題包括：

- 邊際成本價格如何涵蓋固定成本
- 拍賣設計的基本原則
- 失去負載價值（VOLL）作為價格上限：理論與實踐的差異
- 價格限制、價格飆升、投資和可靠性
- 標準市場設計，包括PJM
- 電力池與電力交易所
- 市場力量的謬誤和HHI指數
- 損耗定價和擁塞定價