Course 09 of 20 · Power and Electricity Desk Academy

Congestion, Nodes & Transmission Exposure

Stage C, Commercial exposure and hedging. Level 5 of 10.

Locational price separation, nodal and zonal basis, and exposure created by transmission constraints.

112 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 03, Course 04, Course 06

Enrol or enquire See the 112 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 112 chapters

Open any module for its full chapter list, in teaching order.

M0 Why One Price Becomes Many Ch 1-10
  1. Why Electricity Has a Price at Every Point of Delivery
  2. The Network as the Reason Prices Separate
  3. A Bus, a Node, a Zone and a Hub
  4. Why Power Flows Where Physics Sends It
  5. A Megawatt Cannot Be Routed Like a Cargo
  6. The Transmission Limit That Binds
  7. Reading a Nodal Price Map for One Hour
  8. Which Price Your Contract Actually Settles At
  9. The Sign of a Locational Spread, Settled Once
  10. What One Hour's Price Map Does Not Reveal
M1 The Three Parts of a Locational Price Ch 11-21
  1. The Energy Component and the Reference Bus
  2. The Congestion Component Defined
  3. The Loss Component Defined
  4. Adding the Three Parts Back Together
  5. Why Changing the Reference Does Not Change the Price
  6. Marginal Losses Against Average Loss Factors
  7. Reading a Published Decomposition Without Being Misled
  8. One Constrained Hour, Decomposed Line by Line
  9. The Uncongested Hour and What It Is Worth Knowing
  10. Counterflow Nodes and the Premium They Earn
  11. Tying a Decomposition to the Binding Constraint List
M2 Constraints and Shadow Prices Ch 22-31
  1. What a Binding Constraint Is in a Dispatch Solution
  2. The Shadow Price of a Transmission Limit
  3. Shift Factors: How Much of Your Output Reaches a Limit
  4. Building a Congestion Term from Shift Factors and Shadow Prices
  5. Thermal, Voltage and Stability Limits as Different Causes
  6. Interface and Flowgate Constraints
  7. The Contingency Constraint and the Flow That Never Happened
  8. Nomograms and Limits With More Than One Dimension
  9. Two Constraints Binding at Once
  10. From Limit to Price, Worked at Four Points
M3 Redispatch and the Cost of Relief Ch 32-40
  1. The Redispatch That Resolves a Constraint
  2. The Unit Held Back and the Unit Called On
  3. Why Relief Costs More Than the Energy It Replaces
  4. Out-of-Merit Running as a Locational Signal
  5. Uplift, Make-Whole and the Charge Outside the Price
  6. Who Pays for Congestion Relief
  7. A Constrained Plant's View of the Instruction
  8. Counter-trading When the Price Does Not Separate
  9. A Relief Instruction Priced End to End
M4 Nodal Against Zonal Ch 41-50
  1. What a Bidding Zone Hides
  2. How One Zonal Price Is Formed From Many Buses
  3. The Internal Limit Nobody Can See in the Price
  4. Socialised Congestion Cost and Who Carries It
  5. A Node Inside a Zone: Where the Exposure Really Sits
  6. Redrawing a Zone Boundary and the Basis It Creates Overnight
  7. The Trading Hub as a Weighted Average of Nodes
  8. Choosing Between a Hub and a Physical Point as Reference
  9. What Changes for Your Book When a Market Goes Nodal
  10. Two Designs on One Network, Side by Side
M5 Measuring Nodal Basis Ch 51-61
  1. Nodal Basis Defined Against a Settlement Reference
  2. Assembling an Hourly Basis History Without Corrupting It
  3. The Hourly Shape of a Node's Basis
  4. A Generator Node Against a Load Node
  5. The Distribution Behind a Basis and Its Tail
  6. Why an Average Basis Misleads a Peaking Unit
  7. Weighting a Basis by the Volume It Applies To
  8. Separating Loss Basis From Congestion Basis in a History
  9. Benchmarking a Node Against Its Neighbours
  10. How Stable Is a Node's Relationship to the Hub
  11. The Basis Report a Node Owner Can Act On
M6 The Forward Nodal Basis Curve Ch 62-70
  1. From an Hourly History to a Forward Expectation
  2. Where a Forward Congestion Quote Comes From
  3. Seasonal Shape in a Congestion Expectation
  4. Interpolating a Basis for a Point Nobody Quotes
  5. Topology Change as the Reason a History Stops Applying
  6. Pricing a Point With No History at All
  7. Rolling a Locational Curve and the Re-Mark It Creates
  8. The Far Years and the Precision They Deserve
  9. Testing a Forward Basis Against Physical Headroom
M7 Financial Transmission Rights Ch 71-82
  1. The Right That Pays a Congestion Difference
  2. Obligation or Option: Two Shapes of the Same Right
  3. How a Path Right Settles Against Cleared Prices
  4. Valuing a Path Right From a Forward Congestion View
  5. The Auction That Allocates Transmission Rights
  6. Bidding Into a Rights Auction Without Overpaying
  7. Allocated Entitlements and the Rights Behind Them
  8. A Counterflow Right and the Charge It Can Carry
  9. Revenue Adequacy and the Payout That Falls Short
  10. Secondary Trading and Reconfiguring a Held Right
  11. What a Path Right Does Not Hedge
  12. A Rights Position Valued, Bid and Judged
M8 Outages, Topology and Congestion Events Ch 83-92
  1. The Planned Network Outage as a Price Event
  2. Reading an Outage Schedule as a Basis Forecast
  3. The Unplanned Trip and the Separation It Prints in Minutes
  4. A New Line Energised and the Basis That Disappears
  5. New Generation Behind a Constraint
  6. Demand Growth at a Constrained Point
  7. Seasonal Ratings and the Limit That Moves With Weather
  8. The Point That Separates Every Summer
  9. The Congestion Signal That Did Not Pay
  10. A Congestion Event From Notice to Settlement
M9 The Exposure a Position Carries Ch 93-102
  1. The Hub Sale That Does Not Cover a Nodal Obligation
  2. Sizing a Point's Congestion Exposure in Money
  3. A Supply Obligation Served Across Many Load Points
  4. A Generation Position Marked at Its Own Point
  5. Locational Risk Written Into a Physical Delivery Contract
  6. Collateral and Credit Behind a Locational Position
  7. A Limit Framework for Locational Exposure
  8. Reporting Locational Exposure So Someone Can Decide
  9. The Weather-Driven Point and Why It Is Handed On
  10. Where the Network Ends and the Border Begins
M10 A Worked Case and the Limits of the Method Ch 103-112
  1. The Integrative Case, Part One: The Network and the Book
  2. The Integrative Case, Part Two: A Year of Prices Decomposed
  3. The Integrative Case, Part Three: The Forward View Taken
  4. The Integrative Case, Part Four: Rights Bought and Sold
  5. The Integrative Case, Part Five: An Outage Season That Went Wrong
  6. The Integrative Case, Part Six: The Result Reconciled
  7. The Same Network Seen From the Load Side
  8. Judging a Congestion Analysis by Its Inputs
  9. What Congestion Analysis Cannot Do
  10. The Standing Locational Routine This Leaves You

The brochure gives each of these 112 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 9 of twenty

It stands alone, and it is also the entry point to the Power and Electricity Desk Academy pathway.

Enrol or enquire See the whole pathway