SLIDE 1
Electricity markets and their key players
Rudi Hakvoort
Electricity markets and their key players
Rudi Hakvoort
- To describe the electricity market
- To explain how the market price is determined
Electricity markets and their Electricity markets and their key key - - PowerPoint PPT Presentation
Electricity markets and their Electricity markets and their key key - - PowerPoint PPT Presentation
Electricity markets and their Electricity markets and their key key players players Rudi Hakvoort Rudi Hakvoort Learning objectives To describe the electricity market To explain how the market price is determined in an electricity
SLIDE 2
SLIDE 3
What defines how many products are produced and how many products are sold or consumed?
Consumers
Demand Curve
Producers
Supply Curve
Key players
SLIDE 4
Consumer demand is indicated by the concept of ‘willingness- to-pay’ for their product. Consumers buy a product whenever their willingness to pay is higher than the price
Consumers
SLIDE 5
5
PRICE P* QUANTITY Q*
Demand Curve
SLIDE 6
Producers sell a product when their production costs are lower than the price Producer behaviour depends on:
- Production costs
- Number of companies
competing in the market
Producer
SLIDE 7
PRICE
GENERATION CAPACITY
Supply Curve
SLIDE 8
Demand curve
Market clearing price
Supply curve
Supply and demand
PRICE
GENERATION CAPACITY
Market clearing volume
SLIDE 9
P Q