Electricity market basics

Slides [link]

Key Points

Required reading and response questions

Lecture 1

Response questions:

  1. From an economic perspective, what is so special about electricity? (2-3 sentences)
  2. Why does this make it volatile and hard to regulate? (2-3 sentences)

Lecture 2

Response questions:

  1. We discussed last class why electricity prices are so volatile. What is the issue with volatile real-time prices and stable monthly bills? (2-4 sentences)
  2. Do you think electricity markets are “worth it”? Or is the old regulation model better? (one paragraph)

Additional material