Understanding Electricity Markets

About the Course

As the demand for energy continues to grow and the push for cleaner, sustainable sources intensifies, understanding how electricity markets operate has become crucial for professionals across the energy sector. The rapidly evolving landscape requires individuals to adapt to new regulations, market structures, and the increasing integration of renewable energy sources. This 5-day comprehensive Understanding Electricity Markets training course is designed to equip delegates with the knowledge and skills to master the complexities of electricity markets, ensuring they remain competitive and informed in an environment of constant transformation.

With a focus on both foundational principles and emerging trends, it aims to provide delegates with a thorough understanding of how electricity markets function, covering the key concepts related to pricing mechanisms, market design, and performance efficiency, ensuring that delegates gain a clear understanding of the forces at play in market operations. From traditional models to integrating renewable energy and distributed resources, it explores the interconnected aspects of electricity markets, offering professionals the tools they need to analyse market trends and make informed decisions.

This training program is ideal for individuals working within or alongside the electricity sector, including professionals involved in energy trading, regulatory affairs, system operations, and market analysis. It is tailored to meet the needs of those looking to enhance their expertise and remain ahead of industry shifts. Delegates will have a holistic understanding of electricity markets, enabling them to contribute more effectively to market strategy, policy development, and the transition to sustainable energy solutions.

Core Objectives

The delegates will achieve the following objectives:

• Understand the key concepts, structures, and stakeholders within electricity markets
• Describe the different types of electricity markets and their operational frameworks
• Apply market pricing mechanisms and bidding strategies to real-world market scenarios
• Analyse the impact of renewable energy integration on electricity market dynamics
• Evaluate the effectiveness of demand response programs and market performance indicators
• Design strategies for improving market efficiency and system reliability
• Examine market data and pricing signals to forecast trends and identify opportunities for optimisation

Training Approach

This training course combines interactive lectures with practical, hands-on exercises to ensure delegates grasp key concepts effectively. Real-world case studies, group discussions, and scenario-based learning will be used to deepen understanding and promote active participation. Additionally, they will engage in problem-solving activities to apply theoretical knowledge to practical challenges in electricity market operations.

The Attendees

This training course is designed for professionals who play a pivotal role in the electricity markets and energy sector, including individuals from diverse backgrounds, ranging from market analysis and policy-making to operations and finance, all seeking to deepen their understanding of electricity markets and their strategic implications.

It will be beneficial to professionals in, but not limited to, the following fields:

• Energy Market Analysts
• Utility Managers
• Energy Traders and Brokers
• Renewable Energy Planners
• System Operators and Managers
• Financial Analysts
• Sustainability and Environmental Managers
• Grid Engineers and Technicians
• Project Managers
• Energy Procurement Managers
• Energy Risk Managers
• Electricity Market Engineers

Daily Discussion

DAY ONE: OVERVIEW OF ELECTRICITY MARKETS

• Overview of Electricity Market Structures
• Key Stakeholders in Electricity Markets
• Types of Electricity Markets: Wholesale and Retail
• Regulatory Frameworks and Market Governance
• Understanding Market Clearing and Price Formation
• Market Power and its Implications on Pricing

DAY TWO: MARKET OPERATIONS AND PRICING MECHANISMS

• Energy Pricing Models and Market Mechanisms
• Locational Marginal Pricing (LMP) and its Significance
• Bidding Strategies and Auction Processes
• The Role of Supply and Demand in Market Pricing
• Price Volatility and its Impact on Market Participants
• Demand Response Programs and Price Signals

DAY THREE: ELECTRICITY MARKET PERFORMANCE AND EFFICIENCY

• Market Efficiency and Economic Dispatch
• Managing System Constraints and Congestion
• The Role of Ancillary Services in Market Operations
• Impact of Market Design on System Reliability
• Financial Transmission Rights (FTRs) and Hedging Mechanisms
• Monitoring Market Performance and Identifying Inefficiencies

DAY FOUR: RENEWABLES AND THE FUTURE OF ELECTRICITY MARKETS

• Integrating Renewable Energy Sources into Markets
• Challenges and Opportunities for Renewable Energy Markets
• The Role of Distributed Energy Resources (DERs)
• Energy Storage and its Impact on Market Operations
• Capacity Markets and Resource Adequacy
• Environmental Policies and Their Influence on Market Design 

DAY FIVE: ADVANCED MARKET DESIGN AND STRATEGIES

• Day-Ahead and Real-Time Market Operations
• Market Coupling and Cross-Border Electricity Trading
• Financial Markets and Hedging in Electricity Markets
• Forecasting and Modelling Market Dynamics
• Price Formation in Competitive Markets
• The Impact of Technological Innovations on Market Efficiency