Low-carbon Grids: Operation & Economics

This subject introduces the student to foundational aspects of economic, secure and reliable operation of low-carbon power systems and electricity markets with large shares of variable and uncertain renewable energy sources. The underlying framework is the so-called “affordability-sustainability-security” energy trilemma, which seeks to strike a delicate balance among: the desire to operate power systems at low cost (“affordability”); the desire to meet specific environmental targets (“sustainability”); and the need to “keep the lights on” (“security”). In order for the energy trilemma to be analysed in the context of a competitive market environment, the subject will provide the student with fundamentals of economics, operation of electricity markets, optimal bidding strategies of different market stakeholders, economics of transmission and distribution networks, and role of new technologies and commercial entities such as storage and aggregators. Different aspects of power system security will be analysed, from system-level requirements and constraints to provision of security services from market stakeholders. Basic concepts of optimization, including linear, quadratic, and mixed integer linear programming, will also be taught to provide the student with the tools required to understand and model current and future power system and energy market operation.