Course content

This course introduces students to the structure of electricity markets and their role in the transition towards sustainable, low-emission energy systems. The course is designed and intended for students with an interest and motivation in understanding the principles and functionalities of the electricity markets. Emphasis is placed on understanding markets through the lens of historical drivers (eg, high/low inflow years, gas price surge, interconnector developments), current drivers (eg, renewable support schemes, subsidies such as Norway's electricity price support and Norgespris, policy shifts), and anticipated future drivers (eg, large-scale renewable integration, sector coupling, and digitalization) that are expected to shape low-emission energy solutions. Students will gain a comprehensive understanding of electricity trading mechanisms, the participation of producers and consumers, and the responsibilities of system operators in maintaining system reliability. The Nordic and Norwegian electricity market contexts are used as central case studies, including the historical build-up of the Nordic electricity market as a regional model, with a focus on hydropower impact, renewable integration, and flexibility resources. Particular attention is given to the environmental and societal implications of market design, providing students with both technical insights and a sustainability-oriented perspective.

Learning outcome

After completing the course, the student will have:

Knowledge

• Explain the need for electricity markets, and outline the evolution of the Norwegian/Nordic electricity market.
• Explain the basic principles of price formation in electricity markets.
• Describe how today’s electricity markets are organized, including trading arrangements, settlement processes, and regulatory frameworks.
• Differentiate the perspectives of different market participants, such as producers, consumers and system operators, and describe how they interact.
• Assess the economic, environmental, and societal impacts of electricity market design and operation.
• Identify and analyse the key drivers of sustainable energy system transformation, and how this is expected to impact the design of future electricity markets.

Skills

• Compare and evaluate how different stakeholders (producers, consumers, and system operators) participate and interact in electricity markets under various market structures.
• Apply and operate simulation tools to study market behaviour, hydropower scheduling, renewable integration, demand-side flexibility, and analyse market solutions using digital software.
• Evaluate opportunities and challenges of flexibility resources (e.g., batteries, electric vehicles, demand response) in supporting secure, reliable, and sustainable energy systems.
• Transfer and apply insights from the Nordic electricity market to assess and critically discuss practices in other regional and international contexts

General Competence

• Critically reflect on and appraise the role of market design in advancing sustainable and low-emission energy systems.
• Communicate and present concepts of sustainable energy markets clearly to both technical and non-technical audiences.
• Engage and contribute to interdisciplinary discussions on energy, technology, policy, and sustainability, drawing on an engineering perspective.

Learning methods and activities

Lectures and 6 exercises.

Expected work effort in the course is 225 hours.

A minimum of 75% of exercises must be completed and approved.

Compulsory assignments

• Exercises

Compulsory assignments

• Exercises

Recommended previous knowledge

At least two years of courses at the bachelor level in natural sciences or engineering.

Course materials

To be stated at the start of the semester.