Fundamentals of Power System Economics

by Daniel S. Kirschen, Goran Strbac

A new edition of the classic text explaining the fundamentals of competitive electricity markets�now updated to reflect the evolution of these markets and the large scale deployment of generation from renewable energy sources The introduction of competition in the generation and retail of electricity has changed the ways in which power systems function. The design and operation of successful competitive electricity markets requires a sound understanding of both power systems engineering and underlying economic principles of a competitive market. This extensively revised and updated edition of the classic text on power system economics explains the basic economic principles underpinning the design, operation, and planning of modern power systems in a competitive environment. It also discusses the economics of renewable energy sources in electricity markets, the provision of incentives, and the cost of integrating renewables in the grid.  Fundamentals of Power System Economics, Second Edition looks at the fundamental concepts of microeconomics, organization, and operation of electricity markets, market participants� strategies, operational reliability and ancillary services, network congestion and related LMP and transmission rights, transmission investment, and generation investment. It also expands the chapter on generation investments�discussing capacity mechanisms in more detail and the need for capacity markets aimed at ensuring that enough generation capacity is available when renewable energy sources are not producing due to lack of wind or sun. Fundamentals of Power System Economics, Second Edition is essential reading for graduate and undergraduate students, professors, practicing engineers, as well as all others who want to understand how economics and power system engineering interact.

Genres: Economics, Nonfiction, Finance

344 pages, Hardcover

First published May 28, 2004

Reviews

[Kelsey Breseman · Rating 3 out of 5]

Assuming you are very interested in the economic theory of pricing mechanisms in electrical grid transmission, this is an excellent textbook. Helpful prerequisites would be a basic understanding of power generation logistics (timing etc.) and relative expenses, and ideally a working knowledge of electric transmission current policy. But you'd get by without, too. You don't need a background in economics or engineering; there are introductory chapters for each that do a pretty thorough job of the introductory principles from these fields that you'll use throughout the book.

[negar heshmat · Rating 4 out of 5]

This book is described power systems economics problems and solutions very fluently. All electrical students can understand and use it easily ( it hasn't been publishing only for power system students ).

[René Báez · Rating 4 out of 5]

Good book.