Economy and Electrical Energy Markets


At the end of this course, the student should have acquired fundamental knowledge about electrical energy markets and the associated economic concepts, as well as how the generation and consumption of energy could affect the environment. The student should develop technical and scientific competences to understand, for example, how electricity prices are defined and how to participate in electricity negotiations, understanding the several types of markets. Market modelling and testing of different scenarios will be also developed in the course.
Simultaneously, students’ soft skills, such as oral communication and team work, will be developed through the adoption of adequate procedures during theoretical and practical classes.

General characterization





Responsible teacher

Anabela Monteiro Gonçalves Pronto


Weekly - 4

Total - Available soon

Teaching language



Basic knowledge of AC and DC electrical circuits.

Basic knowledge about production, transmission and distribution of electrical energy.


Daniel S. Kirschen, Goran Strbac, Fundamentals of Power Systems Economics, John Wiley & sons, Ltd, 2004
Chris Harris, Electricity Markets: Pricing, Structures and Economics, John Wiley & sons, Ltd, 2006
Steven Stoft, Power System Economics: Designing Markets for Electricity, IEEE Press and Wiley Interscience, pp. 1−461, 2002.
Fernando Lopes, Helder Coelho, Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs, Springer, 2018
A. Leite Garcia, João Santana, Maria J. Resende, Pedro Verdelho, Sistema Elétrico: Análise Técnico-Económica, Lidel – Edições Técnicas, pp. 1−352, 2016.
Helder Pinto Junior, Economia da Energia, Elsevier, Ltda, 2007
Subhes C. Bhattacharyya, Energy Economics: concepts, Issues, Markets and Governance, Springer, 2011

Teaching method

Available soon

Evaluation method

Available soon

Subject matter

  1. Basic principles of power generation, transmission and distribution
  2. Fundamentals of micro-economy
  3. Architecture and structure of electrical energy markets
  • Supply, demand and price formation in competitive markets
  • Market models: day-ahead and intra-day markets, bilateral and OTCs, and ancillary services markets)

4. Economic dispatch of power plant

5. The Iberian electricity market (MIBEL)and other European and American markets

6.Impact of renewable energies in energy markets

7.Energy and climate change


Programs where the course is taught: