Electricity Markets: Pricing, Structures and Economics

544 Pages·2006·3.97 MB·english

by  Chris Harris

Electricity Markets
Pricing, Structures and Economics
Chris Harris

Electricity Markets
For other titles in the Wiley Finance Series
please see www.wiley.com/finance
Electricity Markets
Pricing, Structures and Economics
Chris Harris
Copyright©2006 JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,
WestSussexPO198SQ,England
Telephone [phone]
Email(forordersandcustomerserviceenquiries):[email protected]
VisitourHomePageonwww.wiley.com
AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemor
transmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanningor
otherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988orunderthetermsofa
licenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad,LondonW1T4LP,UK,
withoutthepermissioninwritingofthePublisher.RequeststothePublishershouldbeaddressedtothe
PermissionsDepartment,JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussex
PO198SQ,England,[email protected],orfaxedto([phone].
Designationsusedbycompaniestodistinguishtheirproductsareoftenclaimedastrademarks.Allbrand
namesandproductnamesusedinthisbookaretradenames,servicemarks,trademarksorregistered
trademarksoftheirrespectiveowners.ThePublisherisnotassociatedwithanyproductorvendor
mentionedinthisbook.
Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardtothesubjectmatter
covered.ItissoldontheunderstandingthatthePublisherisnotengagedinrenderingprofessionalservices.
Ifprofessionaladviceorotherexpertassistanceisrequired,theservicesofacompetentprofessional
shouldbesought.
OtherWileyEditorialOffices
JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA
Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA
Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany
JohnWiley&SonsAustraliaLtd,42McDougallStreet,Milton,Queensland4064,Australia
JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809
JohnWiley&SonsCanadaLtd,22WorcesterRoad,Etobicoke,Ontario,CanadaM9W1L1
Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmaynot
beavailableinelectronicbooks.
BritishLibraryCataloguinginPublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
ISBN-13978-0-470-01158-4(HB)
ISBN-100-470-01158-0(HB)
Typesetin10/12ptTimesbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India
PrintedandboundinGreatBritainbyAntonyRoweLtd,Chippenham,Wiltshire
Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestryinwhichatleast
twotreesareplantedforeachoneusedforpaperproduction.
To Sally, for patience, and everything else

Contents
Preface xix
Acknowledgements xxi
Introduction 1
1 The Basics 7
1.1 How electricity works 7
1.2 Early development of the Electricity Supply Industry (ESI) 10
1.3 The lifecycle of electric power 12
1.4 Development, structure, coordination, legislation of the ESI 14
1.5 New ownership structure 15
1.6 Selected country examples 16
1.6.1 Europe 16
1.6.2 Development in the Americas 18
1.6.3 Australasia 19
1.6.4 Asia 20
1.6.5 Africa and the Middle East 20
2 Structure, Operation and Management of the Electricity Supply Chain 21
2.1 Energy sources 21
2.1.1 Fossil fuel 22
2.1.2 Nuclear 26
2.1.3 Renewable combustible matter 26
2.1.4 ‘Hot’ natural energy 26
2.1.5 ‘Cold’ natural energy 27
2.1.6 Hydrogen 27
2.1.7 Stored 27
2.1.8 Consumables 28
2.1.9 Integration of energy sourcing and power generation 28