Power Markets
Non-storability of power; balancing, congestion, locational pricing; spark and dark spreads; weather and renewable intermittency
Power Markets
Executive Summary
Electricity is essential and uniquely hard to trade: it cannot be stored economically at scale, so supply and demand must be balanced continuously. That leads to sharp price spikes when supply is short and, in systems with high renewables, to negative prices when generation exceeds demand and storage. This module covers the global generation mix, demand and seasonal patterns, wholesale and retail pricing, renewable integration and the "duck curve," and trading and hedging strategies. For practitioners and consultants, mastery supports hedging and trading in power—and supports book and consulting value.
Learning Objectives
By the end of this module you will be able to understand electricity generation mix (fossil fuels, renewables, nuclear, hydroelectric), analyse power demand patterns and seasonal/daily cycles, evaluate power pricing mechanisms (wholesale, retail, capacity markets), assess power market microstructure and real-time balancing, and design hedging strategies for power producers, utilities, and consumers.