There is a need for fundamental changes in the ways society views electric energy. Electric energy must be treated as a commodity which can be bought, sold, and traded, taking into account its time-and space-varying values and costs. This book presents a complete framework for the establishment of such an energy marketplace. The framework is based on the use of spot prices. In general terms: o An hourly spot price (in dollars per kilowatt hour) reflects the operating and capital costs of generating, transmitting and distributing electric energy. It varies each hour and from place to place. o The spot price based energy marketplace involves a variety of utility-customer transactions (ranging from hourly varying prices to long-term, multiple-year contracts), all of which are based in a consistent manner on hourly spot prices. These transactions may include customers selling to, as well as buying from, the utility. The basic theory and practical implementation issues associated with a spot price based energy marketplace have been developed and discussed through a number of different reports, theses, and papers. Each addresses only a part of the total picture, and often with a somewhat different notation and terminology (which has evolved in parallel with our growing experience). This book was xvii xviii Preface written to serve as a single, integrated sourcebook on the theory and imple mentation of a spot price based energy marketplace.

The first comprehensive analysis of capacity markets, an increasingly important and controversial component of electricity markets.

The Government is putting in place policies aimed at driving down energy bills for consumers, reducing input costs for industry, cutting carbon emissions and contributing to a more competitive economy. Electricity demand reduction (EDR) measures are a crucial part of delivering potential. Already developed policies include the flagship Green Deal and new domestic Energy Company Obligation. These, together with the deployment of smart meters, are expected to reduce electricity consumption by nearly 6.5TWh by 2030. In addition, the Green Investment Bank will support access to finance and, in time, audits required under the new EU energy efficiency directive will further reduce demand. However, the Department believes that above and beyond existing policies, it should be possible to reduce demand even further. If a 10% electricity demand reduction could be achieved, this could result in electricity system costs savings in the region of £4 billion in 2030. This consultation opens up a range of options to unlock the energy savings that are currently embedded in the system and seeks views on a number of market-wide financial incentives. Publishing simultaneously to the consultation are a consultation summary document (Cm. 8492, ISBN 9780101849227); Electricity market reform policy overview (Cm. 8498, ISBN 9780101849821); Energy security strategy (Cm 8466, ISBN 9780101846622); Annual energy statement 2012 (Cm. 8456, ISBN 9780101845625); and Statutory security of supply report (HC 688, session 2012-13 ISBN 9780102980691)

With twenty-two chapters written by leading international experts, this volume represents the most detailed and comprehensive Handbook on electricity markets ever published.

This book explores the regulatory challenges posed by the changing landscape of electricity trade to the multilateral trading system.

Americans' safety, productivity, comfort, and convenience depend on the reliable supply of electric power. The electric power system is a complex "cyber-physical" system composed of a network of millions of components spread out across the continent. These components are owned, operated, and regulated by thousands of different entities. Power system operators work hard to assure safe and reliable service, but large outages occasionally happen. Given the nature of the system, there is simply no way that outages can be completely avoided, no matter how much time and money is devoted to such an effort. The system's reliability and resilience can be improved but never made perfect. Thus, system owners, operators, and regulators must prioritize their investments based on potential benefits. Enhancing the Resilience of the Nation's Electricity System focuses on identifying, developing, and implementing strategies to increase the power system's resilience in the face of events that can cause large-area, long-duration outages: blackouts that extend over multiple service areas and last several days or longer. Resilience is not just about lessening the likelihood that these outages will occur. It is also about limiting the scope and impact of outages when they do occur, restoring power rapidly afterwards, and learning from these experiences to better deal with events in the future.