This book describes the latest microeconomic concepts and operations research (OR) techniques needed to comprehend the design and operation of power markets, as well as the actions of their agents: producers, consumers, operators, and regulators. This is critical when it comes to addressing a constantly evolving power system environment that incorporates an increasing number of no-marginal-cost renewable sources, increasingly competitive storage facilities, increasingly responsive demands, and widespread communication channels that allow distributed decision-making. Such evolving environments call for a re-examination of the microeconomic concepts and OR techniques required by graduate students and practitioners in the electric energy field. This accessible, tutorial-style book features numerous illustrative examples to help readers grasp the economic concepts and OR procedures used by power market professionals. The authors explian these concepts and procedures and present a vision of a renewable-dominated marketplace. Each chapter also includes exercises.

This book covers game-theoretic approaches to analyzing policies for environmental regulation in the power sector. The scope includes operational and investment decisions in imperfectly competitive electricity markets as well as transmission planning and policy design. Given this context, this book synthesizes equilibrium and bi-level modeling to address challenging research questions such as: * How are power-plant operations affected by carbon policy, such as cap-and-trade (C&T) systems? * How does market power in electricity generation affect market outcomes and CO2 emissions? * How does a strategic firm with first-mover advantage manipulate both electricity and C&T permit prices? * How does a strategic firm with first-mover advantage invest in new generation capacity under a C&T system? * How does sustainable transmission planning adapt to an imperfectly competitive power sector? * How should a renewable portfolio standard (RPS) target be revised in an imperfectly competitive power sector? This book includes plenty of illustrative examples to facilitate the concepts' comprehension. It is intended to make equilibrium and bi-level models adapted for policy assessment accessible to graduate students, academic researchers, industry practitioners, and policy analysts.

This book describes the latest microeconomic concepts and operations research (OR) techniques needed to comprehend the design and operation of power markets, as well as the actions of their agents: producers, consumers, operators, and regulators. This is critical when it comes to addressing a constantly evolving power system environment that incorporates an increasing number of no-marginal-cost renewable sources, increasingly competitive storage facilities, increasingly responsive demands, and widespread communication channels that allow distributed decision-making. Such evolving environments call for a re-examination of the microeconomic concepts and OR techniques required by graduate students and practitioners in the electric energy field. This accessible, tutorial-style book features numerous illustrative examples to help readers grasp the economic concepts and OR procedures used by power market professionals. The authors explian these concepts and procedures and present a vision of a renewable-dominated marketplace. Each chapter also includes exercises.

This book covers game-theoretic approaches to analyzing policies for environmental regulation in the power sector. The scope includes operational and investment decisions in imperfectly competitive electricity markets as well as transmission planning and policy design. Given this context, this book synthesizes equilibrium and bi-level modeling to address challenging research questions such as: * How are power-plant operations affected by carbon policy, such as cap-and-trade (C&T) systems? * How does market power in electricity generation affect market outcomes and CO2 emissions? * How does a strategic firm with first-mover advantage manipulate both electricity and C&T permit prices? * How does a strategic firm with first-mover advantage invest in new generation capacity under a C&T system? * How does sustainable transmission planning adapt to an imperfectly competitive power sector? * How should a renewable portfolio standard (RPS) target be revised in an imperfectly competitive power sector? This book includes plenty of illustrative examples to facilitate the concepts' comprehension. It is intended to make equilibrium and bi-level models adapted for policy assessment accessible to graduate students, academic researchers, industry practitioners, and policy analysts.