This book is aimed at university students in engineering, in particular graduated students in the electrical engineering area who want to learn more about topics such as the operation of electricity markets and the related policy decisions. The book starts with providing the fundamental theory of economics and regulation in relation to the electricity sector and then recalls the theory of nodal prices for the valuation of electrical energy at a power system buses. Numerical examples are used to clarify the implications of the theoretical models presented. Along with the theoretical aspects of valuating electricity, the book addresses the organisation of markets, including the real case example of the Italian power exchange, the options for capacity markets, the valuation of investments in transmission capacity and the congestion management, briefly recalling the current state of European markets integration. Environmental externalities are addressed while focusing on the current state of emission trading systems and the support for renewable energy. Finally, price formation and financial products supporting electricity trading are discussed.
MASSIMILIANO COPPO has a Ph.D. in Energy Engineering and he is currently a Research Fellow in Power Systems Engineering at the department of Industrial Engineering of the University of Padova, Italy, where he teaches Electricity Markets and Power Systems. His scientific interests include, among others, modelling and simulation of power systems aiming at the operation efficiency optimization through market participation by the end-users.
ARTURO LORENZONI is professor of Energy Economics and Electricity Market Economics at the Department of Industrial Engineering of the University of Padova, Italy. His scientific interests are related to the technical, economic and regulatory aspects of the energy sector and to its overall efficiency, with particular attention to the electric power system, the utilities and the development of renewable energy sources.
LAURA BANO has a Degree in Economics at University of Bologna and a PhD in Energetics at University of Padova. She has over 20 years of experience working in the energy sector in consulting, project development and finance. She currently works as freelance consultant for EU financed projects and in the energy sector, with particular emphasis on regulation, support mechanisms and development of renewable energy sources both in Italy and elsewhere.