Fundamentals Of Power System Economics: A Comprehensive Guide

Power system economics is a branch of economics that deals with the analysis of the economic aspects of the electric power industry. It involves the study of the generation, transmission, distribution, and consumption of electricity, as well as the pricing and regulation of the industry. Power system economics is a complex and challenging field, but it is essential for understanding the operation of the electric power industry and for making informed decisions about energy policy.

Fundamentals of Power System Economics

by Michael Zipursky

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Key Concepts in Power System Economics

There are a number of key concepts that are central to power system economics. These include:

• Demand: The amount of electricity that consumers are willing and able to purchase at a given price.
• Supply: The amount of electricity that generators are willing and able to produce at a given price.
• Price: The equilibrium price that balances demand and supply.
• Marginal cost: The cost of producing an additional unit of electricity.
• Economic dispatch: The process of determining which generators should be used to meet demand at the lowest possible cost.
• Transmission congestion: A condition that occurs when the flow of electricity on a transmission line exceeds its capacity.

Principles of Power System Economics

There are a number of principles that govern the operation of the electric power industry. These include:

• The law of supply and demand: The price of electricity is determined by the interaction of supply and demand.
• The principle of marginal cost pricing: Electricity should be priced at its marginal cost.
• The principle of non-discrimination: All consumers should be charged the same price for electricity.
• The principle of efficiency: The electric power industry should be operated in a way that minimizes the cost of providing electricity to consumers.

Applications of Power System Economics

Power system economics is used in a wide variety of applications, including:

• Energy policy: Power system economics can be used to inform energy policy decisions, such as the optimal mix of generation sources and the design of electricity markets.
• Electricity markets: Power system economics can be used to design electricity markets that are efficient and fair.
• Transmission planning: Power system economics can be used to plan the expansion of the transmission system to meet future demand.
• Congestion management: Power system economics can be used to develop strategies for managing transmission congestion.

Power system economics is a complex and challenging field, but it is essential for understanding the operation of the electric power industry and for making informed decisions about energy policy. This article has provided a brief overview of the fundamentals of power system economics, including key concepts, principles, and applications. For more information, please refer to the resources listed below.

References

• Power System Economics by Steven Stoft
• The Economics of Electricity Markets by Wolfram Fichtner
• The Regulation of Electricity Markets by Michael Crew and Peter Kleindorfer

Fundamentals of Power System Economics

by Michael Zipursky

4.8 out of 5

Language	:	English
File size	:	12901 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	336 pages

FREE