Power Economics in liberalised Electricity Markets


Portrait of Markus von Heel © Copyright: Martin Braun


Markus von Heel

Team Energy System and Market Design


+49 241 80 97698



Description of the lecture

After an introduction in the basics of Power Economics the changed framework in the energy market since beginning of the liberalisation are examined. One emphasis lies on the study of the motives and implementation of liberalisation approaches in international examples. Another key aspect is the detailed view of the roles of the different participants as well as the price formation in liberalised electricity markets.

Course Contents

  1. Introduction of the referee, organisation, content and scope of the lecture, examination
  2. Basics of Power Economics Introduction in the cost structure of a power generation company Presentation of the qualitative and quantitative cost structures in power generation, transport and distribution
  3. The liberalised electricity market
    • Motivation and design of the liberalisation Explanation of the economic goals of liberalisation Impact of these goals on possible liberalisation designs
    • International examples of liberalisation processes USA, GB, Scandinavia, Germany in detail, presentation of the chronological course and framework
    • Market roles in the service market System operator: presentation of its task and environment Grid operator and metering service provider: presentation of the business area of a regulated monopolist
    • Market roles in a competitive market Generation, trade: depiction of the interaction between these business units and the impacts on the power plant operation planning Exchanges: Examination of types of contract and their influence on companies decision making Energy service providers: Examination on this new type of company, especially the interrelation with other market participants
  4. Price formation in liberalised markets Industrial customers: Introduction in the negotiation with industrial customers with regard to costs and risks Price formation in the wholesale market: Examination of the steering mechanisms of the wholesale market and its effects on investment decisions and the economic benefit of all market participants
  5. Experiences with different liberalisation approaches, conclusion, outlook

Registration information for the course

  • Form of exam: oral examination
  • Limited number of participants for examination
    • Regular exam on grade: 90 persons
    • Exam with certificate of academic achievement: 10 persons
    • It is not possible to change from an exam with a certificate of academic achievement to an exam with a grade afterwards
    • Allocation of exam places is done online via the fixed places allocation of the course in RWTHonline
    • Registration via RWTHonline for the course allows participation in the fixed places allocation procedure and consequently the allocation of examination places
    • After your registration you will be added to the Moodle course room by the course assistant before a fixed place is allocated. This is not necessarily equivalent to an examination place.
    • End of the registration period and allocation of fixed places: Mo., 01.05.2023
    • Please contact the course assistant via email
    • You will be added to the Moodle course room by the course assistant
    • Do not register for the course via RWTHonline or, if you have registered, please cancel your registration
  • Participation in the course and exercise is possible without taking the exam
    • Please contact the course assistant via email
    • You will be added to the Moodle course room by the course assistant
  • Erasmus Students, in case the RWTHonline registration does not work, please contact the course assistant via email