Graduate study programme

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Power System Economics and Electricity Market DEa1-05

ECTS 5 | P 45 | A 0 | L 15 | K 0 | ISVU 149727 | Academic year: 2019./2020.

Course groups

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Course lecturers



The aims of the course are to show students the implementation of the technical-economic analysis of the electric power system in open market conditions, show the existing electricity market architecture, explain the roles and behaviours of different market participants (manufacturers, customers, transmission and distribution companies) in different market conditions.

Conditions for enrollment

Requirements met for enrolling in the study programme

Course description

Introduction to engineering economics (interest rate calculation, cost theory and investment cost estimation). The cost of electricity production (conventional and renewables) and the actual cost of electricity production. Cost-effective features of the transmission and distribution network components. Introduction to the Electricity Market (the economic basis of the electricity market, types of market contracts, deregulation and restructuring of the power sector, market participants). Electricity market architecture - theoretical models (bilateral and pool model, auxiliary services market) and practical performances (NordPool, EEX, PJM). Transmission and distribution network under market conditions - transmission and distribution tariffs, different models of transmission (TSO, ITO, NTSO) and distribution companies, transmission network management in case of congestion. Market power - perfect and imperfect competition markets, monopolies and oligopolies, market share indexes (market share, HHI), indexes for market participants' behavior (Lerner index), tools for analysis and simulation of market forces. The legal framework of the electricity market in the Republic of Croatia and the EU - overview of legal and legal acts of the Republic of Croatia and the EU (directives and decrees).

Student requirements

Defined by the Student evaluation criteria of the Faculty of Electrical Engineering, Computer Science and Information Technology Osijek and paragraph 1.9

Monitoring of students

Defined by the Student evaluation criteria of the Faculty of Electrical Engineering, Computer Science and Information Technology Osijek and paragraph 1.9

Obligatory literature

1. 1 Nikolovski, S; Fekete G;. Knežević i Z. Stanić Uvod u tržište električne energije Osijek: ETFOS, 2010.

2. 2 Kirschen, D.S; Strbac, G. Fundamentals of Power System Economic John Wiley & Sons, 2004.

Pretraži literaturu na:

Recommended additional literature

1. 1 M. Shahidehpour, H. Yaminand Z. Li Market Operationsin Electric Power System – Forecasting, Scheduling and Risk Management John Wiley & Sons, Inc., New York, 2002

2. 2 M. Greer Electricity cost modeling calculations Elsevier, Burlington USA, 2011.

3. 3 S. Stoft Power System Economics – Designing Markets for Electricity IEEE/Wiley, 2002

Course assessment

Conducting university questionnaires on teachers (student-teacher relationship, transparency of assessment criteria, motivation for teaching, teaching clarity, etc.). Conducting Faculty surveys on courses (upon passing the exam, student self-assessment of the adopted learning outcomes and student workload in relation to the number of ECTS credits allocated to activities and courses as a whole).

Overview of course assesment

Learning outcomes
Upon successful completion of the course, students will be able to:

1. explain the basic concepts of engineering economics and the electricity market

2. compare investment operating and maintenance costs, investment costs and fuel costs for different kinds of power plants as well as analyse levelised costs of electricity (LCOE) of different power plants technology

3. evaluate different methods for a cost benefit analysis in a power system

4. compare the role of different market participants (generating companies, suppliers, traders, transmission and distribution system operators, etc.) on a theoretical and practical level

5. make a simulation of the exploitation of market power in an electricity market

6. eEvaluate different methods for congestion management

Aktivnosti studenta: Vidi tablicu aktivnosti