F1IE 4430 - Electricity Market Design.

Electricity markets are vital for the energy transition. The way electricity systems decarbonize, integrate variable renewables, facilitate the electrification of end uses such as transport and heat demand, and unlock the untapped potential for flexibility services will determine our ability to reach ambitious climate targets. This course assesses market design debates taking place today through the lens of flexibility: which market parties have flexibility, in which markets can it be offered? What role do grid operators at transmission and distribution level, should/can they also use this flexibility to solve their own congestion issues? How can the most societally beneficial use of flexibility be guaranteed? What do we expect from grid users themselves? What can smart tariff design achieve, and what are its limitations? All these topics will be discussed in a very interactive, and intellectually demanding manner.

Learning Outcomes

• Students will summarize the most important concepts and topics in electricity market design
• Students will reflect on the nuances and trade-offs in electricity market design. Students will examine the different trends that drive the evolution of electricity markets and illustrate this by real-life case studies.
• Students will be challenged to reflect on their own ideas critically, and contrast different viewpoints on a range of topics.

The class is very interactive: students will constantly be challenged to think about the issues at hand, and receive constructive feedback which is meant to trigger thought more than it focuses on correcting ‘wrong' ideas. The purpose of the feedback is to motivate the students to dig deeper.

Students will also receive feedback for the group presentations, which will serve to kick-off class discussions. Students will receive written feedback on their final paper.

Suggested assessment (to be confirmed depending on group size):

• Individual In-class participation 10%
• Group oral presentation 40%
• Individual final paper 50%

Course workload:

Number below based on 6 ECTS course (150 hours of work total, of which 24 hours in class, and ~120 supplementary hours)

• In Class Presence: 4 hours a week / 24 hours a semester
• Online learning activities: 2 hours a week / 12 hours a semester
• Reading and Preparation for Class: 4 hours a week / 24 hours a semester
• Research and Preparation for Group Work: 2 hours a week / 12 hours a semester
• Research and Writing for Individual Assessments: 3 hours a week / 18 hours a semester