• Erdmann G, Zweifel P. Energieökonomik, Theorie und Anwendungen. Berlin Heidelberg: Springer; 2007.
• Grimm V, Ockenfels A, Zoettl G. Strommarktdesign: Zur Ausgestaltung der Auktionsregeln an der EEX *. Zeitschrift für Energiewirtschaft. 2008:147-161.
• Stoft S. Power System Economics: Designing Markets for Electricity. IEEE; 2002.,
• Ströbele W, Pfaffenberger W, Heuterkes M. Energiewirtschaft: Einführung in Theorie und Politik. 2nd ed. München: Oldenbourg Verlag; 2010:349.

This lecture discusses different design options for electricity markets. We will focus on different approaches of nodal and zonal pricing as well as single price mechanisms and capacity markets. After a short recap of German and European market designs, the different design options will be discussed scientifically and with the help of examples. Furthermore, we will evaluate alternative market design options like microgrids. Besides the fundamental functioning of those markets, we will introduce and discuss methodological knowledge to evaluate market design options.

The lecture has also been added in the IIP Module Basics of Liberalised Energy Markets.

The total workload for this course is approximately 135.0 hours. For further information see German version.

The student

• know the scientifically discussed design options for energy markets.
• can evaluate and discuss advantages and disadvantages of different energy market design options.
• can jusge which design is ideal in which environment.
• is able to understand and employscientific methods to evaluate energy market designs

The assessment consists of a written exam (60 min) (according to §4(2), 1 of the examination regulation). By successful completion of the exercises (according to §4(2), 3 of the examination regulation) a bonus can be obtained. If the grade of the written exam is at least 4.0 and at most 1.3, the bonus will improve it by one grade level (i.e. by 0.3 or 0.4). The bonus only applies to the first and second exam of the semester in which it was obtained.