Knowledge and comprehension abilities
At the end of the course, the student will know and understand the fundamental mechanisms of the birth, development and functioning of the electricity market.
Knowledge and applied comprehension
At the end of the course, the student will be able to understand the effect of an energy politics, to analyze the advantage of an investment in electric energy production and similar activities
Autonomy of judgement
At the end of the course, the student will be able to apply the acquired knowledge to real examples concerning the production and control of electricity production.
Communication skills
The oral exam aims to verify the student's ability to use the correct terminology to express concepts relating to the electricity market and its infrastructures.
Comprehension abilities
At the end of the course, the student will be able to apply the acquired knowledge and will be able to acquire new notions on the functioning of the electricity market.

Basic notions on the functioning of electrical systems

1) Legislation and history of electricity market Aim of electricity market, peculiarities of electricity market, brief history of electricity markets energy policy, correlation between energy consumes and social welfare, structure of Italian market 2) Market basics Market definition, costs and profit, cost functions, marginal cost, market equilibrium. Characteristic of electricity market, Bertrand model, Cournot model, Stackelberg model. Demand and supply. Regulation in electricity market, price regulation. 3) Electricity price Costs and prices. Constraints in electricity market: demand and supply balance. Mathematical model: cost function and constraints. Mathematical model for losses and line capacity. Production strategies. Paid-as-cleared e paid-as-bid. 4) Plant management Production sources, Costs, Profit curves. Technical constraints. Nash Cournot. Analysis of investments. 5) Market models Vertically integrated market, single buyer market, competitive wholesale market, retail market. Contracts. Electricity market segments. Market models: PX and POOL. Examples. 6) The Italian electricity market. Institutions and actors of the electricity market. Organization of the market: Day Ahead Market, Intraday Market, Ancillary Services Market, Forward electricity Market. Market Zones. Single National Price. Transmission Capacity costs. 7) Ancillary Services Frequency and voltage regulation, load shedding, emergency services. N-1 security criterion, Value of Lost Load, Remuneration of reserve, Demand Response 8) Active power transmission Power flow, Power Congestion Market, Losses. Optimal Dispatching. 9) Reactive power market Role of reactive power in voltage regulation. Reactive power sources. Production cost for reactive power production. Measures for reactive power remuneration. Commissioning and test of reactive power regulators. 10) Forecasting Time series. Components in time series. Auto correlation and correlation. Time series analysis methodology. Neural networks for time series forecasting. Model evaluation. Examples. 11) Retail Electricity market Directive 96/92/CE December 19, 1996, Buying electrical energy, Energy prices, Final price in end-user bill, Indexed prices, End user meters, 2G, data and transmission protocols: Power Line Communications, Protocols: TLS, MQTT, JSON 12) Renewable energy sources market Renewable sources costs. LCOE. sLCOE, Grid parity. Pay back time. Yield. Renewable energy sources policies. Feed-in systems. Tendering, Renewable Energy Communities. 13) Blockchain Motivations. DLT. Prerequisites: cryptography, PKI, algorithms. Smart contracts. Examples.

Teacher slides.
Coppo, Lorenzoni, Bamo: Principles of electricity markets economics, società editrice Esculapio

1) Legislation and history of electricity market
Aim of electricity market, peculiarities of electricity market, brief history of electricity markets energy policy, correlation between energy consumes and social welfare, structure of Italian market
2) Market basics
Market definition, costs and profit, cost functions, marginal cost, market equilibrium. Characteristic of electricity market, Bertrand model, Cournot model, Stackelberg model. Demand and supply. Regulation in electricity market, price regulation.
3) Electricity price
Costs and prices. Constraints in electricity market: demand and supply balance. Mathematical model: cost function and constraints. Mathematical model for losses and line capacity. Production strategies. Paid-as-cleared e paid-as-bid.
4) Plant management
Production sources, Costs, Profit curves. Technical constraints. Nash Cournot. Analysis of investments.
5) Market models
Vertically integrated market, single buyer market, competitive wholesale market, retail market. Contracts. Electricity market segments. Market models: PX and POOL. Examples.
6) The Italian electricity market.
Institutions and actors of the electricity market. Organization of the market: Day Ahead Market, Intraday Market, Ancillary Services Market, Forward electricity Market. Market Zones. Single National Price. Transmission Capacity costs.
7) Ancillary Services
Frequency and voltage regulation, load shedding, emergency services. N-1 security criterion, Value of Lost Load, Remuneration of reserve, Demand Response
8) Active power transmission
Power flow, Power Congestion Market, Losses. Optimal Dispatching.
9) Reactive power market
Role of reactive power in voltage regulation. Reactive power sources. Production cost for reactive power production. Measures for reactive power remuneration. Commissioning and test of reactive power regulators.
10) Forecasting
Time series. Components in time series. Auto correlation and correlation. Time series analysis methodology. Model evaluation. Examples.
11) Retail Electricity market
Directive 96/92/CE December 19, 1996, Buying electrical energy, Energy prices, Final price in end-user bill, Indexed prices, End user meters, 2G, data and transmission protocols: Power Line Communications, Protocols: TLS, MQTT, JSON
12) Renewable energy sources market
Renewable sources costs. LCOE. sLCOE, Grid parity. Pay back time. Yield. Renewable energy sources policies. Feed-in systems. Tendering, Renewable Energy Communities.
13) Blockchain
Motivations. DLT. Prerequisites: cryptography, PKI, algorithms. Smart contracts. Examples.

Lessons, applied examples, and seminars.

Slides of lessons are uploaded on Moodle.

Students will have to take an oral test, composed of at least three questions regarding the arguments of the course.
Important note: Possible changes to the normal examination procedure, due to the safety protocols for COVID19, will be communicated on the DIA web sites.