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Syllabus for

Academic year
EEK201 - Power market management
Syllabus adopted 2012-02-21 by Head of Programme (or corresponding)
Owner: MPEPO
7,5 Credits
Grading: TH - Five, Four, Three, Not passed
Education cycle: Second-cycle
Major subject: Electrical Engineering

Teaching language: English
Open for exchange students
Block schedule: C

Course module   Credit distribution   Examination dates
Sp1 Sp2 Sp3 Sp4 Summer course No Sp
0108 Examination 7,5c Grading: TH   7,5c   21 Dec 2013 am V,  25 Apr 2014 pm V,  29 Aug 2014 am M

In programs



Univ lektor  Tuan Le Anh
Professor  Lina Bertling Tjernberg


EEK200   Operation of restructured power systems

Course evaluation:

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For single subject courses within Chalmers programmes the same eligibility requirements apply, as to the programme(s) that the course is part of.

Course specific prerequisites

ENM065 Power system operation, or equivalent.


This course will provide students with solid knowledge on fundamentals of management of deregulated electricity market in the changing paradigms (deregulation), which is taking place all over the world today. The course focuses on economic operation planning practices in electric power system, electricity market structures and settlement models, roles of the independent system operator in different market structures, models of different market players (e.g., generation company, retailer, large consumer), transmission congestion management and ancillary services, investment decisions in the market environment, and system reliability aspect. One of the unique features of the course is that the course gives a well-balanced mix between the technical details of the power system with economic aspects of the power market. The students will have the opportunity to simulate and understand power system operations and market dynamics through computer-based projects and a real-life electricity market simulation game.

Learning outcomes (after completion of the course the student should be able to)

- Formulate and implement different economic operation models in the deregulated market environment using optimization modeling software.
- Demonstrate the understanding of fundamentals of market operation issues, such as market settlement, congestion management.
- Understand the objectives, behaviors and roles of different market players
- Demonstrate the understanding of the investment planning issues in generation and transmission in deregulated environment.
- Evaluate the reliability level of the generating system
- Gather information, data, methods, etc., on a specific topic within the course, write a standard technical paper (IEEE format) based on information collected, and make a good presentation of the paper.
- Collaborate to work in team for the computer project and term-paper.


The course will cover the following topics:

- Economic operation planning: Economic load dispatch (ELD), Unit Commitment (UC) and Optimal Power Flow (OPF) models. Differences of the models in traditional system and in the deregulated market environment.

- Fundamentals of electricity markets and energy auctions: Background to deregulation and markets, supply and demand functions, equilibrium, models of electricity markets, example on modeling of Nordic electricity market, roles of independent system operators, market operators.

- Models of market players: Objectives and mathematical models of a competitive generation company, a retailer and a large customer. Market power issues and its mitigation.

- Transmission congestion management and ancillary services: Transmission capacity and evaluation of net transmission capacity (NTC); Congestion management methods- market splitting, counter-trading; Effect of network congestion on market outcomes; Frequency regulation, Reactive power ancillary services; Nordic regulating power market;

- Investment planning in the market environment: Responsibility for investment; Rate-of-return based investment decision in generation; Value-based transmission planning approach.

- Management of system reliability: Generation system reliability, reserve requirement, concept and calculation of LOLP; Reliability in markets, short- and long-term approach to maintain service reliability in electricity markets (e.g., market-driven, capacity payment, reliability contracts).


The course is organized in about 17 lectures, 12 tutorials, 1 computer-based project, 1 term-paper and 1 power market game. In the project, students will develop optimization program to simulate a competitive electricity market. In the market game, students will have the opportunity to join in a real-life market place and play different market roles. Students will also write a term-paper for the topic of their choice.


Lecture handouts. Lectures will be based on the following textbooks:

[1] D.S. Kirschen, G. Strbac, ¿Fundamentals of Power System Economics¿, John Wiley and Sons, 2004.
[2] K. Bhattacharya, M.H.J. Bollen and J.E. Daalder, "Operation of Restructured Power Systems", Kluwer Academic Publishers, 2001.
[3] M. Shahidehpour, H. Yamin, Z. Li, ¿Market Operations in Electric Power Systems¿, John Wiley and Sons, 2002.
[4] A.J. Wood and B.F. Wollenberg, ¿Power Generation, Operation, and Control¿, John Wiley & Sons, 2nd Ed., 1996.


The examination is based on a written exam, and approved project and term paper. The final grade will be 5, 4, 3, and U (fail).

Page manager Published: Mon 28 Nov 2016.