Code: EL0
Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.
Prerequisites: None
The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour. It’s a lot of fun!
Introduction
Market Overview
Spot, hedge, retail, frequency keeping and ancillary markets
Cash flows for generators and retailers
Generation, retail, transmission, distribution, consumers
Governing legislation and market rules
Electricity power flows and concepts
Energy conversions and units
Transmission: The Grid
AC grid
The HVDC link and inter-island power flows
Losses and line limits
Transmission and line charges
Demand
Total demand for electricity in New Zealand
Demand growth - history and projections
Seasonal demand profiles
Embedded generation and grid off-take
Metering and reconciliation
Supply
Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type
Hydro, thermal, geothermal, wind and cogeneration
The wholesale spot and ancillary markets
Role of the System Operator in Dispatch
Offers & Bids
Market models
Reserves and frequency keeping
Cost of Supply
Fuel use and efficiency of thermal generators, heat rate
Fuel cost calculations
Long run and short run costs
Electricity Price Behaviour
Understanding historical price patterns and their origin
The Retail and hedge Markets
Retail TOU contracts
Hedge contracts
NB: Course material may vary from the above on the day.
