Energy Market Engineeting at Karlsruher Institut für Technologie

Flashcards and summaries for Energy Market Engineeting at the Karlsruher Institut für Technologie

Arrow Arrow

It’s completely free

studysmarter schule studium
d

4.5 /5

studysmarter schule studium
d

4.8 /5

studysmarter schule studium
d

4.5 /5

studysmarter schule studium
d

4.8 /5

Study with flashcards and summaries for the course Energy Market Engineeting at the Karlsruher Institut für Technologie

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Description of the German incentive regulation
of the grid expansion

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Typical arguments about Capacity Markets

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

capacity adequacy problem


Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Problems with FTRs

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Defintion of (Generation) Adequacy

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

The adequacy problem

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

High risk of market failure

--> long term

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

High risk of market failure

--> short term

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Electricity as an economic good has unique characteristics

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

capacity markets

--> basic purpose and idea

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Mitigating market power

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Problems of the HHI

Your peers in the course Energy Market Engineeting at the Karlsruher Institut für Technologie create and share summaries, flashcards, study plans and other learning materials with the intelligent StudySmarter learning app.

Get started now!

Flashcard Flashcard

Exemplary flashcards for Energy Market Engineeting at the Karlsruher Institut für Technologie on StudySmarter:

Energy Market Engineeting

Description of the German incentive regulation
of the grid expansion

From a technical point of view, the concept pursued by the German network planning process is a national standard, or “copper plate”, in that the grid should allow for basically all flows that occur given the stochastic in-feed of renewables, the market-based dispatch of conventional units, and the commercial exchanges with other countries (Bundesnetzagentur, 2011). This also implies that a cost-benefit analysis is not foreseen, as a trade-off between the provision of transmission capacity and unit re-dispatch is not considered

Energy Market Engineeting

Typical arguments about Capacity Markets

  •  Ensure that producers receive sufficient revenues to cover long-run average costs and thereby support investment
  • Prevent competing retailers from ‘‘free-riding’’ on the resources of other retailers
  • Promote or require long-term contracting and hedging by load serving entities (LSEs)
  • Reduce the volatility of prices and the revenues of producers
  • Develop a framework for compensating units subject to local market-power mitigation

Energy Market Engineeting

capacity adequacy problem


Lacking Incentives for additional controllable capacity can cause a capacity adequacy problem

(Secured capacity in Germany is reduced)

Energy Market Engineeting

Problems with FTRs

–> major problem of FTR’s is htat their compensation is insufficient

  • Unfortunately, there are also a number of drawbacks. First, the awarded CRRs [FTRs] do not adequately compensate investors
  • LMPs are unlikely to recover fixed network costs and additional charges are required

Energy Market Engineeting

Defintion of (Generation) Adequacy

(Generation) Adequacy is a measure of the ability of a power system to supply the load in all the steady states in which the power system may exist considering standards conditions.

Energy Market Engineeting

The adequacy problem

  • The adequacy problem describes the optimization of capacity for VoLL
  • in a usual market system, suppliers would enter or exit until the price reaches an equilibrium in which every participant can be sustained. Hoewever, it is unclear how much blackouts this would imply
  • regulators are usually unwilling to let this happen

Energy Market Engineeting

High risk of market failure

--> long term

  • no possibilities for scarcity pricing
  • price volatility, increasing renewable generation

–> missing money –> generation inadequacy –> long term market failure

Energy Market Engineeting

High risk of market failure

--> short term

  • inelasticity of demand
    • end consumers do not see real-time prices
    • electricity preceived as a rigth
    • no short-term substitutes
    • consumption separated from payment
  • inelasticity of supply above a certain capacity
    • long power plant lead times

–> no intersection of supply and demand curve –> short term market failure

Energy Market Engineeting

Electricity as an economic good has unique characteristics

  • High welfare losses in case of market failure
  • high risk of market failure

Energy Market Engineeting

capacity markets

--> basic purpose and idea

The basic purpose of a capacity market is to acquire enough generating capacity in advance to assure that there will be sufficient resources when they are most needed.

The basic idea is the fear of too little capacity

Energy Market Engineeting

Mitigating market power

  • forward contracts and obligations of suplliers
  • uncertainty of demand which causes supply curve bidding
  • long-run consequences

Energy Market Engineeting

Problems of the HHI

  • very static, global measure which causes problems
  • low demand elasticity causes way larger market power than the HHI would predict
  • depending on the style of competition the HHI is not the perfect index to measure market power
  • forward contracting is not considered
  • HHI cannot account for effects of geographical distribution

Sign up for free to see all flashcards and summaries for Energy Market Engineeting at the Karlsruher Institut für Technologie

Singup Image Singup Image
Wave

Other courses from your degree program

For your degree program Production And Operations Management at the Karlsruher Institut für Technologie there are already many courses on StudySmarter, waiting for you to join them. Get access to flashcards, summaries, and much more.

Back to Karlsruher Institut für Technologie overview page

Fern- und Luftverkehr

OR in SCM

What is StudySmarter?

What is StudySmarter?

StudySmarter is an intelligent learning tool for students. With StudySmarter you can easily and efficiently create flashcards, summaries, mind maps, study plans and more. Create your own flashcards e.g. for Energy Market Engineeting at the Karlsruher Institut für Technologie or access thousands of learning materials created by your fellow students. Whether at your own university or at other universities. Hundreds of thousands of students use StudySmarter to efficiently prepare for their exams. Available on the Web, Android & iOS. It’s completely free.

Awards

Best EdTech Startup in Europe

Awards
Awards

EUROPEAN YOUTH AWARD IN SMART LEARNING

Awards
Awards

BEST EDTECH STARTUP IN GERMANY

Awards
Awards

Best EdTech Startup in Europe

Awards
Awards

EUROPEAN YOUTH AWARD IN SMART LEARNING

Awards
Awards

BEST EDTECH STARTUP IN GERMANY

Awards

How it works

Top-Image

Get a learning plan

Prepare for all of your exams in time. StudySmarter creates your individual learning plan, tailored to your study type and preferences.

Top-Image

Create flashcards

Create flashcards within seconds with the help of efficient screenshot and marking features. Maximize your comprehension with our intelligent StudySmarter Trainer.

Top-Image

Create summaries

Highlight the most important passages in your learning materials and StudySmarter will create a summary for you. No additional effort required.

Top-Image

Study alone or in a group

StudySmarter automatically finds you a study group. Share flashcards and summaries with your fellow students and get answers to your questions.

Top-Image

Statistics and feedback

Always keep track of your study progress. StudySmarter shows you exactly what you have achieved and what you need to review to achieve your dream grades.

1

Learning Plan

2

Flashcards

3

Summaries

4

Teamwork

5

Feedback