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Power System Economics: Designing Markets for Electricity, Paperback, 1 Edition by Stoft, Steven (Used)

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Paperback: 1 Edition
Used: Very Good

Publication Date: 2002-05-14
Publisher: Wiley-IEEE Press
Paperback : 493 pages
Edition: 1 Edition
Author: Stoft, Steven
ISBN-10: 0471150401
ISBN-13: 9780471150404

Product Description The first systematic presentation of electricity market design-from the basics to the cutting edge. Unique in its breadth and depth. Using examples and focusing on fundamentals, it clarifies long misunderstood issues-such as why today's markets are inherently unstable. The book reveals for the first time how uncoordinated regulatory and engineering policies cause boom-bust investment swings and provides guidance and tools for fixing broken markets. It also takes a provocative look at the operation of pools and power exchanges. * Part 1 introduces key economic, engineering and market design concepts. * Part 2 links short-run reliability policies with long-run investment problems. * Part 3 examines classic designs for day-ahead and real-time markets. * Part 4 covers market power, and * Part 5 covers locational pricing, transmission right and pricing losses. The non-technical introductions to all chapters allow easy access to the most difficult topics. Steering an independent course between ideological extremes, it provides background material for engineers, economists, regulators and lawyers alike. With nearly 250 figures, tables, side bars, and concisely-stated results and fallacies, the 44 chapters cover such essential topics as auctions, fixed-cost recovery from marginal cost, pricing fallacies, real and reactive power flows, Cournot competition, installed capacity markets, HHIs, the Lerner index and price caps. About the Author Steven Stoft has a Ph.D. in economics (U.C. Berkeley) as well as a background in physics, math, engineering, and astronomy. He spent a year inside FERC and now consults for PJM, California and private generators. Learn more at Review "This book is for anyone seeking to understand how cost/price relationships involved in electrical energy production and distribution may ideally be determined." ( Electrical Apparatus, August 2002) "...the quality of its content deserves a wide readership..."(Power System Economics The Journal of Energy Literature, Vol.V111, No.2, 2002) From the Author How a Basic Book Came to Provide Cutting Edge ToolsSteven Stoft (, April 22, 2002. The economics of power systems differs from that of other markets in appearance and in reality. But appearances deceive and produce false new economic theories—e.g., competitive pricing cannot pay the cost of power plants. The real differences lie hidden and allow a blind faith that "the market" will solve all problems—e.g., provide a reliable level of generation capacity. I began the book knowing that much of this confusion could be cleared up by stripping away apparent differences to show that power markets usually work like normal markets. Economics does not need re-writing, only careful application. But power systems present some genuine puzzles. Applying basic economics to apparent differences leads to familiar results. I have presented these results simply along with examples for the uninitiated. The same approach leads to surprising results when applied to real differences. For example, the demand side of today’s power markets is quantitatively so different from standard text-book markets that it produces an unusual type of market failure. Part 2 of the book reveals how the lack of coordination between engineers and regulators, in controlling this failure, produces the headline-grabbing price spikes characteristic of current markets. Part 3 analyzes day-ahead and real-time markets but also asks fundamental questions about the need for complex pools. Are their calculations subverted by the bids of speculators? Observations of Eastern pools suggest power-market design is still in its early stages. This book provides a simple yet solid foundation, diagnoses the problems that now threaten the existence of deregulated markets, and provides tools to help make repairs. From the Inside Flap An Introduction to the Fundamental Economics of Power Market Design and Analy

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