Power Markets and Economics
Energy Costs, Trading, Emissions
February 2009
326 Pages, Hardcover
Wiley & Sons Ltd
It is now almost twenty years since liberalisation and the
introduction of competition was proposed for electricity utilities.
Some form of restructuring has been widely adopted around the world
to suit local objectives. The industry now faces new challenges
associated with global warming, rising prices and escalating energy
demand from developing countries like China and India. The industry
will have to cope with; managing emissions; managing variable
energy sources like wind, dev eloping clean coal technology;
accommodating distributed generation and new nuclear stations and
managing the impact of these developments on the distribution and
transmission networks. It is now necessary to consider how the
various market structures that were adopted have performed and how
they will address some of these new issues and what further changes
might be necessary.
This volume presents an all-inclusive analysis of the
electricity market structures that have been adopted around the
world and how they are performing. It provides an up-to-date
analysis of the cost of competing technologies, the operation of
energy and ancillary service markets and the impact of renewable
sources and emission restrictions. It takes a forward look at
likely future developments necessary to cope with the new emerging
issues.
* Part One introduces industry infrastructure, analysing state
utilities, the motives behind liberalisation and the resulting
structures.
* Part Two considers generation costs, including renewable
generation costs, and investigates the cost of restricting
emissions as well as transmission and distribution costs.
* Part Three discusses market operation, describing how costs
affect the organisation of power generation. It covers trading
arrangements, ancillary services, international trading and
investment.
* Part Four looks to future markets and technological
developments that will shape the industry through the next twenty
years. This includes the appraisal of investment opportunities for
global power companies and implications for market
performance.
Written by an internationally renowned consultant engineer, this
book is full of expert insight and balances fundamental methodology
and academic theory with practical information and diverse worked
examples.
This is an excellent reference on the topic for power system
engineers, regulators, banks, investors, and government energy
agencies. With its many worked examples, it is also a brilliant
tutorial accessible for postgraduates and senior undergraduates in
electrical and power engineering.
informed discussion of this vital problem that is so often
dominated by ill-informed debate.? (Oxford Prospect, August
2009)
"Murray's overview of the link between engineering and economics
in the energy sector provides a timely look at the big challenge
for the global power industry.... [It] provides a sound bases for
anyone involved in the wider debate on how the market should be
shaped." (Engineering and Technology, May 2009)
"Murray's overview of the link between engineering and
economics in the energy sector provides a timely look at the big
challenge for the global power industry ? .[It] provides a sound
bases for anyone involved in the wider debate on how the market
should be shaped." (Engineering and Technology, May
2009)
I have specialised in power system development and economics for
the last 40 years having worked for a distribution company and as a
senior manager with a generator (CEGB), a transmission company
(NGC) and a manufacturer (ABB). Prior to liberalisation I worked on
the development of algorithms to optimise system planning and
operation which led to my playing a lead role in the restructuring
of the UK power sector in 1990. In 1998 I set up as an independent
consultant with a company called 'Electricity Market Services
Ltd' and published a book on early experiences with Wiley
called 'Electricity Markets'. Since then I have worked
on projects throughout the world. I have advised government
agencies and regulators in Belgium, the UK, South Africa, Sri
Lanka, Oman, Namibia and Abu Dhabi. I have analysed markets for
clients covering the UK, France, Germany, the Netherlands, Spain,
Italy, Ireland, Poland, the Czech Republic, Romania, Greece,
Turkey, Scandinavia, the Ukraine, Russia and Kazakhstan, Botswana
and Mozambique. I have also undertaken assignments in the US,
Trinidad and Tobago and Singapore, for banks in Europe, the World
Bank and for oil and gas companies. This new book is based on the
experience and understanding gained from this wide spectrum of
assignments and international experience. It shows how power costs
can be calculated and compares those from conventional sources with
renewable and other alternatives. It also includes detailed
calculations of distribution and transmission charges showing the
makeup of end user charges and the impact of emission restrictions.
Part three discusses the operation of markets and how they may be
analysed while part four speculates on future developments. I was
encouraged to write the book and record my understanding and
experiences by universities and others who recognised the shortage
of books in this area. I have included worked examples and
endeavoured to keep abreast of the latest developments. The
industry continues to face new challenges and it remains to be seen
how well the market structures put in place will be able to deal
with them.
I originally trained as a power systems engineer with a first in
Electrical Engineering. I subsequently took a Diploma in management
Studies and completed a PhD in electricity markets. I am a fellow
of the IEE, a senior member of the American IEEE and a member of
the British Institute of Management.
