Electricity Markets: Theories and Applications

In many cases, students with an electrical power engineering background need to have a good understanding of fundamental concepts in economic theories, particularly microeconomic theories and some advanced optimization methods. The first part of the book covers the basic drivers for the transformation of the electricity industry in both the United States and around the world, and then discusses the fundamentals of power system operation, electricity market design and structures, and electricity market operation. The second half of the book goes into detail about advanced topics of power system operations and electricity market design and structure including zonal versus nodal pricing, market power performance and issues, transmission pricing, and the emerging problems electricity markets face in smart grid and micro-grid environments.