The first systematic presentation of electricity market design-from the basics to the cutting edge. Unique in its breadth and depth. Using examples and focusing on fundamentals, it clarifies long misunderstood issues-such as why today's markets are inherently unstable. The book reveals for the first time how uncoordinated regulatory and engineering policies cause boom-bust investment swings and provides guidance and tools for fixing broken markets. It also takes a provocative look at the operation of pools and power exchanges. Part 1 introduces key economic, engineering and market design concepts. Part 2 links short-run reliability policies with long-run investment problems. Part 3 examines classic designs for day-ahead and real-time markets. Part 4 covers market power, and Part 5 covers locational pricing, transmission right and pricing losses. The non-technical introductions to all chapters allow easy access to the...

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