Summary
In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had undergone enormous changes for reasons ranging from the technological advances on supply and demand sides to politics and ideology. A restructuring of electric power industry at the turn of the 21st century involved replacing the vertically integrated and tightly regulated "traditional" electricity market with multiple competitive markets for electricity generation, transmission, distribution, and retailing. The traditional and competitive market approaches loosely correspond to two visions of industry: the deregulation was transforming electricity from a public service (like sewerage) into a tradable good (like crude oil). As of 2020s, the traditional markets are still common in some regions, including large parts of the United States and Canada. The initial idea of a simple wholesale electricity market restructuring ("energy-only", replacing the regulated electricity price with the market-defined one) did not work out, thus the competitive wholesale electricity market structure is quite complex and typically includes (in addition to two markets for the electricity itself: wholesale – all of these use offer caps in some form – and retail): ancillary services markets for the services not directly related to producing electricity and thus providing no income in the "energy-only" model, but essential for overall operation of the system (frequency control market, voltage control and reactive power management, etc.); capacity market or some other mechanism providing an income stream necessary to build and maintain additional generation units ("reserves") for the worst-case scenario. On a typical day, these units are never called upon (not "dispatched") and thus produce no revenue from the sale of electricity either; cost-based market with audited costs replacing producers' bids in places where the local market power is a concern (e.
About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
Related publications (31)

Loading

Loading

Loading

Show more
Related units

No results

Related concepts (57)
Electricity market
In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had undergone enormous changes for reasons ranging from the technological advances on supply and demand sides to politics and ideology.
Electrical grid
An electrical grid is an interconnected network for electricity delivery from producers to consumers. Electrical grids vary in size and can cover whole countries or continents. It consists of: power stations: often located near energy and away from heavily populated areas electrical substations to step voltage up or down electric power transmission to carry power long distances electric power distribution to individual customers, where voltage is stepped down again to the required service voltage(s).
Demand response
Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries electric energy could not be easily stored, so utilities have traditionally matched demand and supply by throttling the production rate of their power plants, taking generating units on or off line, or importing power from other utilities.
Show more
Related courses (23)
EE-570: Power system restructuring and deregulation
This course presents different types and mechanisms of electricity markets. It addresses in particular their impacts on power/distribution systems operation and consequently the appropriate strategies
ENG-410: Energy supply, economics and transition
This course examines the supply of energy from various angles: available resources, how they can be combined or substituted, their private and social costs, whether they can meet the demand, and how t
HUM-123(b): Global issues: energy B
Le cours abordera les grandes problématiques technologiques et socio-économiques liées à la transition énergétique, et discutera des perspectives et barrières à l'établissement d'un système énergétiqu
Show more
Related lectures

Loading

Related MOOCs (7)
SES Swiss-Energyscope
La transition énergique suisse / Energiewende in der Schweiz
Analyse du cycle de vie environmental
MOOC introduction à la pensée du cycle de vie et aux concepts théoriques pour réaliser et critiquer une analyse du cycle de vie.
Plasma Physics: Introduction
Learn the basics of plasma, one of the fundamental states of matter, and the different types of models used to describe it, including fluid and kinetic.
Show more