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ELEC5212: Power System Planning and Markets (2020 - Semester 2)

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Unit: ELEC5212: Power System Planning and Markets (6 CP)
Mode: Normal-Day
On Offer: Yes
Level: Postgraduate
Faculty/School: School of Electrical & Information Engineering
Unit Coordinator/s: Dr Ma, Jin
Session options: Semester 2
Versions for this Unit:
Campus: Camperdown/Darlington
Pre-Requisites: ELEC3203 OR ELEC5732 OR ELEC9203.
Brief Handbook Description: Deregulation of the electricity industry has fundamentally changed the power systems operation paradigm. The focus has shifted from central planning of vertically integrated utilities to market driven operation. Traditional electric energy producers and consumers play new roles in a power market environment and their behaviors are affected by the economic incentives to a large extent. Nevertheless, electric energy is a special commodity and cannot be traded as the other common goods. So a power market design has many special considerations compared with a conventional commercial market design. Knowledge of the power market mechanisms has become a necessary part in fully understanding the whole power system operations. To equip students with necessary skills to address the challenges of modern power systems, the unit will cover the following topics:

-Overview of the traditional electricity industry structure and operation: Economic dispatch, Power system operation states and respective reliability requirements.

-Drivers for the restructuring of the electricity industry.

-Electricity market design: Market structures (spot, bilateral, hybrid); Energy market; Ancillary services market; Key components in an electricity market.

-Electricity market participants and their roles in a market.

-Electricity economics: Power market from suppliers' view (Supply curve) and from demands' view (Demand curve); Market mechanism; Price and its elasticity; Cost and supply; Market power and monopoly.

-Cost of capital: Time value of money; Project evaluation methods from investments' point of view; Risk and return.

-Operation mechanisms of various designs of power markets.

-Power market practices around the world.

-Power system expansion planning: Fundamental knowledge of power system planning considerations, procedures and methods; Transmission planning; Generation planning; Power system adequacy assessment.

ELEC5212 is a specialist Unit for MPE (Power) and ME (Electrical and Power). It is also available as a recommended elective for BE Electrical (Power). This unit focuses on the power market principles and practices. Based on the knowledge of the power market operation, the power system planning procedures and methods will also be discussed.
Assumed Knowledge: The pre-required knowledge for learning this UoS is power system steady state analysis
Lecturer/s: Dr Ma, Jin
Timetable: ELEC5212 Timetable
Time Commitment:
# Activity Name Hours per Week Sessions per Week Weeks per Semester
1 Lecture 2.00 1 13
2 Tutorial 2.00 1 5
3 Laboratory 2.00 1 6
4 Independent Study 3.00 1 13
T&L Activities: Lecture: 13 2-hour lectures to explain the fundamental concepts of power system planning and markets.

Tutorial: 5 sessions of 2-hour tutorials covering calculation examples using the fundamental concepts explained in the lectures and applying analytical and problem solving skills.

Laboratory: 6 sessions 2-hour laboratory experiments on market design. Laboratories will focus on power market modeling and design for different system configurations and various scenario analysis using appropriate mathematical tools.

Independent Study: Study at home.

Learning outcomes are the key abilities and knowledge that will be assessed in this unit. They are listed according to the course goal supported by each. See Assessment Tab for details how each outcome is assessed.

Unassigned Outcomes
1. Understand the characteristics of traditional electricity industry structure and the power market structure;
2. Understand the driving forces towards the power market
3. Understand fundamentals of engineering economics;
4. Gain a deep understanding on power market design, including market types, market structure, market model and its components
5. Gain a deep understanding of power system operation in a deregulated environment.
6. Gain a deep understanding on the principles of investment, knowledge of risk and return and their applications on power system expansion planning
7. Gain a deep understanding on power system planning principles, considerations, procedures and methods
8. Ability to model and analyse power market behaviors using appropriate mathematical tools
9. Ability to apply probability theory and simulation methods to analyse the risk and return for decision making
10. Ability to investigate inquiries and develop knowledge by drawing on a vast source of professional documents in various formats and synthesising the information to solve a specific engineering problem
11. Ability to present concise information accurately using varied formats and media to a level appropriate to the expected understanding from this Unit of Study.
12. Ability to write reports to communicate complex project specific information concisely and accurately and to the degree of specificity required by the engineering project at hand.
13. Ability to work in a team by assuming diverse roles, aiding or initiating the process of team interaction and drawing on and being receptive to others' viewpoints, to try and solve a specific engineering task.
Assessment Methods:
# Name Group Weight Due Week Outcomes
1 Final Exam No 50.00 Exam Period 4, 5, 7, 8,
2 Mid-Sem Exam No 20.00 Week 8 3, 4, 5,
3 Lab 1 Yes 10.00 Week 7 3, 4, 5, 7, 8, 10, 11, 12, 13,
4 Lab 2 Yes 10.00 Week 10 3, 4, 5, 7, 8, 10, 11, 12, 13,
5 Lab 3 Yes 10.00 Week 13 4, 5, 7, 8, 10, 11, 12, 13,
Assessment Description: Final Exam: Close-book exam covering all taught knowledge through the semester.

Mid-semester exam: To monitor students’ progress and provide feedback to students through mid-semester assessment.

Lab 1: Market modeling and design for an interconnected two-area system with detailed scenario analysis.

Lab 2: Market modeling and design for a three-area system with detailed scenario analysis;

Lab 3: Market modeling for more practical and complex situations with detailed scenario analysis.

The students will be given homework along the progress of the course, which will allow students to practice for the mid-term and final exam problems. Homework is not graded, but the mid-semester quiz and final exam consists of some problems based on the homework.
Grade Type Description
Standards Based Assessment Final grades in this unit are awarded at levels of HD for High Distinction, DI (previously D) for Distinction, CR for Credit, PS (previously P) for Pass and FA (previously F) for Fail as defined by University of Sydney Assessment Policy. Details of the Assessment Policy are available on the Policies website at . Standards for grades in individual assessment tasks and the summative method for obtaining a final mark in the unit will be set out in a marking guide supplied by the unit coordinator.
Policies & Procedures: See the policies page of the faculty website at for information regarding university policies and local provisions and procedures within the Faculty of Engineering and Information Technologies.
Prescribed Text/s: Note: Students are expected to have a personal copy of all books listed.
Recommended Reference/s: Note: References are provided for guidance purposes only. Students are advised to consult these books in the university library. Purchase is not required.

Note that the "Weeks" referred to in this Schedule are those of the official university semester calendar

Week Description
Week 1 Lecture: A general introduction to this Unit of Study and to power market practices, a history review on power industry deregulation and restructuring worldwide, power market models and types.
Week 2 Lecture: Components of power markets and their roles. Market mechanisms, Computing tools for market analysis.
Week 3 Lecture: Economic cost; Supply curve and demand curve, market price determination and its elasticity, Profit analysis and social surplus.
Week 4 Lecture: Economic efficiency and losses, market power and monopoly.
Week 5 Lecture: Energy market design, components and its operational mechanism.
Week 6 Lecture: Different market models and its impacts on energy trading and power system operation.
Week 7 Lecture: Cost of capital; time value of money; project evaluation methods based on Net Present Value.
Assessment Due: Lab 1
Week 8 Lecture: Alternatives for project evaluation; risk and return analysis.
Assessment Due: Mid-Sem Exam
Week 9 Lecture: Ancillary service market, capacity payment, participating in markets for electrical energy
Week 10 Lecture: Power system planning principles, considerations, procedures, methods.
Assessment Due: Lab 2
Week 11 Lecture: Risk analysis in power system planning.
Week 12 Lecture: Decision making under uncertainties in power system planning. Modeling generation expansion.
Week 13 Lecture: planning methods on generation expansion. Review of concepts and methods in power market design and power system planning.
Assessment Due: Lab 3
Exam Period Assessment Due: Final Exam

Course Relations

The following is a list of courses which have added this Unit to their structure.

Course Year(s) Offered
Electrical (till 2014) 2014
Electrical (Computer) (till 2014) 2014
Electrical (Power) (till 2014) 2014
Electrical (Telecommunications) (till 2014) 2014
Electrical Mid-Year 2016, 2017, 2018, 2019, 2020, 2021
Electrical/ Project Management 2019, 2020
Electrical 2015, 2016, 2017, 2018, 2019, 2020, 2021
Electrical / Arts 2016, 2017, 2018, 2019, 2020
Electrical / Commerce 2016, 2017, 2018, 2019, 2020
Electrical / Medical Science 2016, 2017
Electrical / Music Studies 2016, 2017
Electrical / Project Management 2016, 2017, 2018, 2020
Electrical / Science 2016, 2017, 2018, 2019, 2020
Electrical/Science (Health) 2018, 2019, 2020
Electrical (Computer) 2015
Electrical / Law 2016, 2017, 2018, 2019, 2020
Electrical (Power) 2015
Electrical (Telecommunications) 2015
Software Mid-Year 2016, 2017, 2018, 2019, 2020, 2021
Software/ Project Management 2019, 2020
Software 2015, 2016, 2017, 2018, 2019, 2020, 2021
Software / Arts 2016, 2017, 2018, 2019, 2020
Software / Commerce 2016, 2017, 2018, 2019, 2020
Software / Medical Science 2016, 2017
Software / Music Studies 2016, 2017
Software / Project Management 2016, 2017, 2018
Software / Science 2016, 2017, 2018, 2019, 2020
Software/Science (Health) 2018, 2019, 2020
Software / Law 2016, 2017, 2018, 2019, 2020
Software Engineering (till 2014) 2014
Electrical/Science (Medical Science Stream) 2018, 2019, 2020
Master of Engineering 2014, 2015, 2016, 2017, 2018, 2019, 2020
Master of Professional Engineering (Accelerated) (Electrical) 2019, 2020
Master of Professional Engineering (Accelerated) (Power) 2019, 2020
Master of Professional Engineering (Electrical) 2014, 2015, 2016, 2017, 2018, 2019, 2020
Master of Professional Engineering (Power) 2014, 2015, 2016, 2017, 2018, 2019, 2020
Software/Science (Medical Science Stream) 2018, 2019, 2020

Course Goals

This unit contributes to the achievement of the following course goals:

Attribute Practiced Assessed
(7) Project and Team Skills (Level 3) No 0%
(6) Communication and Inquiry/ Research (Level 3) No 0%
(2) Engineering/ IT Specialisation (Level 4) No 0%

These goals are selected from Engineering & IT Graduate Outcomes Table 2018 which defines overall goals for courses where this unit is primarily offered. See Engineering & IT Graduate Outcomes Table 2018 for details of the attributes and levels to be developed in the course as a whole. Percentage figures alongside each course goal provide a rough indication of their relative weighting in assessment for this unit. Note that not all goals are necessarily part of assessment. Some may be more about practice activity. See Learning outcomes for details of what is assessed in relation to each goal and Assessment for details of how the outcome is assessed. See Attributes for details of practice provided for each goal.