Course 18 of 20 · Power and Electricity Desk Academy

Cross-Border Power & Interconnector Economics

Stage D, Specialised products and regional practice. Level 8 of 10.

Cross-border flow, interconnector capacity allocation and price coupling economics.

122 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 03, Course 09, Course 17

Enrol or enquire See the 122 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 · 122 chapters

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

M0 The Border as a Commercial Fact Ch 1-11
  1. Two Systems, Two Prices, One Cable
  2. What an Interconnector Actually Sells
  3. Entitlement, Energy and the Two Purchases
  4. Why Borders Get Their Own Market
  5. Who Stands on Each Side of a Crossing
  6. The Three Conditions for a Paying Crossing
  7. Scheduled Exchange Versus the Physics
  8. Where Money Collected at a Border Ends Up
  9. Direction, Reversal and the Daily Question
  10. The Working Vocabulary of a Border Desk
  11. First Pass Over an Unfamiliar Border
M1 Links, Owners and Operators Ch 12-22
  1. Synchronous Borders and Their Many Parallel Paths
  2. Controllable Links and the Set-Point
  3. Converter Stations and the Fixed Cost of Crossing
  4. One Asset, Two Jurisdictions
  5. Regulated Links and the Revenue They Are Allowed
  6. Merchant Links and the Exemption Bargain
  7. The Cap and Floor Arrangement
  8. Losses on the Wire and Who Absorbs Them
  9. Derating, Availability and a Shrunken Offer
  10. Coordinating an Outage Across Two Regimes
  11. The Publication Trail a Crossing Leaves
M2 How Much a Border Can Carry Ch 23-33
  1. Thermal, Voltage and Stability Limits
  2. Total Transfer Capability, Built Up
  3. The Security Margin and What It Buys
  4. The Net Figure as a Negotiated Outcome
  5. Why the Offered Quantity Moves Hourly
  6. Remedial Action and the Quantity It Releases
  7. Unscheduled Flow Across a Neighbour
  8. Trading Through a System You Did Not Buy
  9. The Argument Over a Minimum Offer
  10. Remaining Margin After Prior Allocation
  11. Reading a Carrying Forecast Sceptically
M3 Buying the Right to Cross Ch 34-45
  1. Splitting the Crossing From the Energy Trade
  2. Entitlement as a Tradable Instrument
  3. Where Border Rights Are Sold, and When
  4. The Product Ladder From Annual to Daily
  5. Constructing a Bid Curve for Entitlement
  6. How Entitlement Clears and What You Pay
  7. Nomination Deadlines and Lapsed Rights
  8. Automatic Resale of Unused Entitlement
  9. Declaring a Crossing Against What You Hold
  10. Reselling Into the Secondary Market
  11. Admission, Guarantees and Bidding Limits
  12. A Worked Purchase of Annual Entitlement
M4 Coupling the Two Markets Together Ch 46-57
  1. What the Split Purchase Gets Wrong
  2. Allocating the Border Inside the Energy Auction
  3. What the Coupling Calculation Is Asked to Do
  4. Net Export Curves and a Zone's Appetite
  5. Convergence: When Neighbours Share a Price
  6. The Spread as the Price of the Last Megawatt
  7. Working Out Congestion Revenue
  8. Order Types the Calculation Must Respect
  9. Decoupling: When the Calculation Fails
  10. The Fallback Allocation
  11. Firmness, the Deadline and Compensation
  12. A Worked Coupled Hour Across Three Zones
M5 Scheduling and Delivering a Crossing Ch 58-68
  1. From Executed Trade to Confirmed Exchange
  2. Matching Schedules Between Two Operators
  3. Finding and Vetting a Party on the Far Side
  4. Balance Responsibility on Both Sides
  5. When Exchange and Metering Diverge
  6. Trading a Border After the Day-Ahead Result
  7. Working Against a Shrinking Margin
  8. Capacity Revisions Inside the Delivery Day
  9. Deadlines That Do Not Line Up
  10. Clocks, Zones and the Hour That Vanishes
  11. A Crossing Walked From Trade to Delivery
M6 Border Rights as Hedging Instruments Ch 69-79
  1. Financially Settled Rights Against Physical Ones
  2. The Payoff of a Right at Settlement
  3. Options and Obligations on the Same Border
  4. Pricing a Right From the Spread Distribution
  5. Covering a Delivered Obligation Across a Border
  6. The Gap Between the Right and Your Exposure
  7. Curtailment of a Right and What Follows
  8. Valuing a Held Right Between Auctions
  9. Exiting a Long-Dated Border Position
  10. A Border Right Against a Forward Abroad
  11. A Worked Hedge Using Long-Dated Cover
M7 The Economics of a Single Crossing Ch 80-90
  1. Assembling the Delivered Cost of a Crossing
  2. Charges That Are Not in the Spread
  3. Gross, Net and the Breakeven Difference
  4. The Short-Dated Product as an Option
  5. Why a Year Is Worth Less Than Its Days
  6. Expected Value of Holding Cover
  7. A Border Arbitrage, Part One: the Case
  8. A Border Arbitrage, Part Two: the Outturn
  9. Backing the Wrong Direction
  10. Thin Differences and the Refusal to Trade
  11. Choosing Between Two Borders
M8 Allocation by Domain Rather Than Limit Ch 91-101
  1. From One Number to a Feasible Region
  2. Monitored Elements and the Faults Assumed
  3. Distribution Factors, Explained Plainly
  4. The Reference Case Behind the Region
  5. Pre-Processing and Operator Adjustments
  6. Extra Constraints Imposed on the Result
  7. Flows That Run the Unprofitable Way
  8. Reading a Published Region
  9. Estimating the Room Left for Your Position
  10. Price Patterns a Region Produces
  11. The Limits of a Domain Model for Trading
M9 Borders That Do Not Behave Ch 102-112
  1. Selling Into a Market That Is Not Joined
  2. A Non-Member System on the Far Side
  3. Links Into an Isolated System
  4. Quarter-Hours on One Side, Hours on the Other
  5. Two Currencies, One Difference
  6. Asymmetric Rules and the Weaker Side
  7. A Crossing Into a Nodally Priced System
  8. When the Neighbour Holds No Day-Ahead Auction
  9. Political Interruption and Emergency Restriction
  10. A Border Whose Design Changes Mid-Contract
  11. Opening a Border Nobody on the Desk Knows
M10 Putting a Whole Border Together Ch 113-122
  1. A Border Book, Part One: the Position
  2. A Border Book, Part Two: Securing Cover
  3. A Border Book, Part Three: the Result
  4. A Coupling Failure and Its Damage
  5. Expected Revenue Against Realised
  6. Reviewing a Border Portfolio Quarterly
  7. Questions to Settle Before a New Border
  8. Handing a Border Position to a Colleague
  9. Where Border Economics Stops Being Useful
  10. Closing: the Border as a Priced Decision

The brochure gives each of these 122 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 18 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