Skip to main content
Unit of study_

ELEC5212: Power System Planning and Markets

Deregulation of the electricity industry has fundamentally changed the power systems operation paradigm. The focus has shifted from central planning of vertically integrated utilities to market driven operation. Traditional electric energy producers and consumers play new roles in a power market environment and their behaviors are affected by the economic incentives to a large extent. Nevertheless, electric energy is a special commodity and cannot be traded as the other common goods. So a power market design has many special considerations compared with a conventional commercial market design. Knowledge of the power market mechanisms has become a necessary part in fully understanding the whole power system operations. To equip students with necessary skills to address the challenges of modern power systems, the unit will cover the following topics: -Overview of the traditional electricity industry structure and operation: Economic dispatch, Power system operation states and respective reliability requirements. -Drivers for the restructuring of the electricity industry. -Electricity market design: Market structures (spot, bilateral, hybrid); Energy market; Ancillary services market; Key components in an electricity market. -Electricity market participants and their roles in a market. -Electricity economics: Power market from suppliers' view (Supply curve) and from demands' view (Demand curve); Market mechanism; Price and its elasticity; Cost and supply; Market power and monopoly. -Cost of capital: Time value of money; Project evaluation methods from investments' point of view; Risk and return. -Operation mechanisms of various designs of power markets. -Power market practices around the world. -Power system expansion planning: Fundamental knowledge of power system planning considerations, procedures and methods; Transmission planning; Generation planning; Power system adequacy assessment. ELEC5212 is a specialist Unit for MPE (Power) and ME (Electrical and Power). It is also available as a recommended elective for BE Electrical (Power). This unit focuses on the power market principles and practices. Based on the knowledge of the power market operation, the power system planning procedures and methods will also be discussed.

Code ELEC5212
Academic unit Electrical and Information Engineering
Credit points 6
Assumed knowledge:
ELEC3203 OR ELEC9203 OR ELEC5732. The assumed knowledge for learning this UoS is power system steady state analysis

At the completion of this unit, you should be able to:

  • LO1. understand the characteristics of traditional electricity industry structure, and the power market structure
  • LO2. understand the driving forces towards the power market reform
  • LO3. understand fundamentals of engineering economics
  • LO4. understand power market design, including market types, market structure, market model, and its components
  • LO5. understand power system operation in a deregulated environment
  • LO6. understand the principles of investment, knowledge of risk and return, and their applications on power system expansion planning
  • LO7. understand power system planning principles, considerations, procedures, and methods
  • LO8. model and analyse power market behaviours using appropriate mathematical tools
  • LO9. apply probability theory and simulation methods to analyse the risk and return for decision making
  • LO10. investigate inquiries and develop knowledge by drawing on a vast source of professional documents in various formats, and synthesise the information to solve a specific engineering problem
  • LO11. present concise information accurately using varied formats and media to a level appropriate to the expected understanding from this unit of study
  • LO12. write reports to communicate complex project specific information concisely and accurately, and to the degree of specificity required by the engineering project at hand
  • LO13. work in a team by assuming diverse roles, aiding, or initiating the process of team interaction, and drawing on, and being receptive to others' viewpoints, to try and solve a specific engineering task.