Power System Economics: Designing Markets for Electricity by Steven Stoft
By Steven Stoft
This ebook fairly disillusioned me. It doesn't offer in-depth clarification s on options nor strong examples.
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Additional resources for Power System Economics: Designing Markets for Electricity
Transmission congestion must be managed, at least in part, by the system operator. Section 3: Risk Management and Forward Markets. Both generators and their customers are risk averse and wish to avoid the fluctuating prices of the spot market. Not only the hour-to-hour and day-to-day price variations but also the yearto-year variations in the spot market's average price are problematic. Forward energy trading can hedge these risks and needs no more regulation than other commodity markets. Section 4: Transmission and Distribution.
Retail service in electricity does not include distribution of power to the customer. In its present form, it usually does not include metering or even meter reading. Most retailing consists of financial transactions, all of which can be provided fiom an office building. There are relatively few possibilities for value added. Early on, deregulation advocates claimed that retailers would provide innovative products (new types. of meters and new qualities of electricity), but now their claims of innovation focus on billing.
I PART 1 Power Market Fundamentals by the system operator. There seems to have been no cost-benefit analysis, but balancing the system with some accuracy is absolutely necessary, System frequency is exactly the same for all customers in an interconnection. For example, Quebec and Florida have exactly the same frequency. As long as any system operator maintains its fi-equency,every other system in the Eastern Interconnection will also have exactly the right frequency. As a result, no one has much interest in trying to maintain frequency.