Electricity Markets

Online /
Feb 5 - 9, 2024 /
Course Code: 14-0239-ONL24

The confirmation of this course depends on early registration; Register early to avoid the postponement or cancellation of a course.
  • Overview
  • Syllabus
  • Instructor


Please note, This instructor-led course has specific dates and times:
This course is held online over 5 days on the following schedule (All times in Eastern Time Zone):
1:00 pm to 6:00 pm Eastern (Will include breaks)

This course will help you to:

  • Possess advanced knowledge about electricity markets for different systems in North America, including energy, capacity, and ancillary services markets
  • Describe major components of a power system and types of wholesale electricity markets
  • Describe platforms for real-time and forward wholesale electricity markets
  • Explain locational marginal price (LMP) and its components
  • Describe, at high level, types of risks inherent in the wholesale energy markets and financial tools to manage such risks
  • Describe the role of generators, transmission, and load in a power system
  • Define and provide examples of ancillary services
  • State the role of FERC and state regulatory agencies
  • Describe ISO/RTO functions
  • Describe role of transmission in the regional wholesale electricity markets
  • Explain bilateral and real-time energy markets
  • Discuss RTO/ISO financial settlement and credit issues

This course is an introduction to the Electricity Markets. It shall introduce candidates to mega-scale economics and explain the characteristics of various types of energy systems. Students will study the differences between electricity markets for energy, spinning reserves, capacity and ancillary services, emphasizing the detailed structures of energy and capacity markets. This course was designed as an introduction to the activities associated with designing and implementing electricity markets, this includes economic load dispatch (ELD), optimal power flow (OPF), unit commitment (UC), security-constraint unit-commitment (SCUS), locational marginal price (LMP), and demand curves (DC).

Additional information includes electricity markets history and deregulation, legal and regulatory issues, high-level design, detailed design, and documentation requirements.

Who should attend:
Power System Operators, Power System Analysts and Engineers, including Generation and Transmission Planners and Operational Engineers • Protection Engineers • ISO/RTO Technical Staff • Operations Supervisors • Power Developers and Marketers • Power Exchange Personnel • Regulatory Staff • Economic and Management Consultants

Course Outline:

  • History of Electricity Sector Restructuring
  • Introduction to Electricity Markets
  • Energy Market Fundamentals
  • Capacity Markets
  • Ancillary Services Markets
  • Financial Transmission Rights
  • Market Power and Market Power Mitigation

Special Features:
Virtual Training Methodology:

  • A combination of virtual lectures and digital practical exercises, polls, whiteboards, virtual gamification along with digital documents and videos.
  • Individual, pair and group work through breakout rooms to develop the skills learned on the course.
  • Delivered over five consecutive days of 5 hours plus an additional break for 30-minute lunch.
More Information

Time: 1:00 PM - 6:00 PM Eastern Time

Please note: You can check other time zones here.


Day 1 (Introduction to Electricity Markets)

  • History – Market Restructure
  • FERC 888, 889, 890
  • Vertically Integrated Utility
  • Vertically Integrated Power Systems
  • North American Electrical Power Grid
  • Regional Transmission Organizations (RTOs/ISOs)
  • Electricity Markets – Different Types
  • Electricity Market – Nash Equilibrium

Day 2 (Energy Markets – Part I)

  • Energy Markets – Overview
  • Energy Market Fundamentals
  • Market Clearing Mechanisms
  • Power System Analyses
  • Power Flow Simplification – Distribution Factors
  • LMP Contour Maps
  • Basic Cost Concepts for Generators
  • Fixed Cost Concepts for Power Generation
  • Generator Characteristics - Influence Operations
  • Generator Cost Characteristics
  • Short Run Marginal Cost – Reference Level
  • Economic Load Dispatch (ELD)
  • Significance of Lagrange Multipliers

Day 3 (Energy Markets – Part II)

  • ELD Mathematical Model with Losses
  • Power Pools – Trades
  • Unit Commitment Problem
  • Supply Function of Generators
  • Genco’s Revenue & Profit
  • Electricity Demand Function
  • Demand Elasticity
  • Gross and Net Surplus of Customer
  • Market Equilibrium
  • Perfect Market: Generator’s Perspective
  • Different Pricing Schemes – UMP and LMP
  • LMP Fundamentals & Characteristics
  • Locational Marginal Price (LMP) Components
  • Delivery Factor (DF)
  • Generation Shift Factor (GSF)
  • LMP on a Three Node Network
  • Two Settlement Payment System
  • Transmission Congestion Management
  • Financial Transmission Rights (FTRs)

Day 4 (Capacity Markets)

  • Introduction to Capacity Markets
  • Why Capacity Markets?
  • Resource Adequacy
  • Definition of NET-CONE
  • Defining the Capacity Product
  • Qualified Capacity (UCAP vs. ICAP)
  • Resource Performance Obligations
  • Capacity Auctions
  • Definition of Net-CONE and Gross-CONE
  • Design of Capacity Auction Demand Curve
  • Capacity Auction Locational Consideration
  • Auction Engine Mechanics
  • Price Setting Techniques
  • Demand Response Auction and Capacity Auction in Ontario

Day 5 (Ancillary Services Markets & Market Power Mitigation)

  • Introduction to Ancillary Services Markets
  • FERC Classifications: By Type of Use
  • NERC: Interconnected Operation Services
  • Regulation and Load Following Services
  • What is Frequency Regulation?
  • What are Contingency Reserve Services?
  • Reactive Power as an Ancillary Service
  • Market Power – Electricity Markets
  • Market Power – Economic Withholding
  • Market Power – Physical Withholding
  • Reference Levels
  • Market Power Mitigation Mechanisms
  • Market Monitoring Reports


Mohamed Ahmed (Sadek), Ph.D., P.Eng.

Dr. Mohamed Ahmed has more than 25 years of hands-on experience in R&D, conceptual and detailed engineering, electricity markets, electricity market design, engineering and project management all in the Electrical Power System (Transmission and Distribution) business. Dr. Ahmed has an extensive experience with the safe, efficient and effective operation of the power system and system dispatch operations within North America and Middle East. Dr. Ahmed was responsible for providing the leadership and direction to ensure that the necessary staff, policies and procedures are in place and a culture of reliability and compliance with NERC and NPCC are developed and implemented to provide safe, secure and economic local and regional transmission system operation.

Dr. Ahmed has also conducted many techno-economic feasibility studies involving steady state and dynamic modeling and analysis of power systems, including smart grids, thermal and renewable generation interconnection, HVDC systems, and power electronic converters. Dr. Ahmed also developed conceptual and detailed designs of several T&D systems for utility, commercial and industrial projects.

Dr. Ahmed was the lead developer of the DR Auction, Capacity Auction, and Market Power Mitigation in the Energy Market for the IESO in Ontario. He is a proficient user of PSS®E, DSA TOOLS, GE-PSLF, GE-MAPS, GE-MARS, CDEGS–SES, ETAP, CYME, EDSA, GAMS, PROMOD, UPLAN, PLEXOS, PSCAD/EMTDC, and MATLAB/SIMULINK power system simulation tools. Besides, he has developed power system analysis and energy management software tools including load flow and short circuit analysis of power systems with renewable energy resources and optimal hydrothermal generation scheduling. He participated in preparing several winning proposals, including both technical and budget estimation activities.

Dr. Ahmed has been also responsible for the development of competitive (FERC 1000) and merchant transmission projects in several independent system operators in the US, including PJM, SPP and MISO.

Dr. Ahmed is an IEEE member where he actively participates in several IEEE Task Forces on modeling and analysis of distributed energy resources. He is also an official technical reviewer for IET and IEEE Power and Energy Society journals and conference publications. In addition, he has developed and delivered short courses/lectures/tutorials related to power system engineering education and training.

Dr. Ahmed is a registered engineer with the Egyptian Syndicate of Engineers and a registered Professional Engineer in the Province of Ontario, and the Province of Alberta, Canada.

Dr. Ahmed has received the B.Sc. and M.Sc. degrees in Electrical Engineering from Ain Shams University, Cairo, Egypt, in 1999 and 2005, respectively, and the Ph.D. degree in Electrical Engineering from the Department of Electrical and Computer Engineering, University of Waterloo, Waterloo, Ontario, Canada, in 2012.

In the last year of Dr. Ahmed’s PhD (2011 – 2012), he got a full one-year internship at Hydro-One; the largest Utility in Canada. In his internship, the main goal was to increase the capability of Hydro-One feeders to accommodate more renewable energy projects without affecting the operation of the distribution system, to facilitate that he developed a multi-agent system to control the voltage across some Hydro-One feeders, using the existing system assets (i.e. voltage regulators, capacitors, energy storage, Inverter based DGs, etc.)

Since Dr. Ahmed’s graduation in 2012, he decided to shift his career from academia to industry to gain practical experience to augment his academic knowledge. First, he worked as a Senior Research Engineer with IBM Canada, Research and Development Department, Smart-Planet Division, for two years (2012 – 2014) on a project titled “Effects of Weather Forecasting on the Evaluation of the Reliability of Electrical Transmission and Distribution Systems.” In this project, he used IBM High-Performance Computing and IBM Big Data Analytics Platforms (e.g., Info-Sphere Streams “SAS”, Big-Insights, and Cloud Computing), and Artificial Intelligence (AI) techniques, those tools and techniques are very powerful especially when it comes to large-scale data applications for the new structure of the power system with Smart-Grids and Micro-Grids. In addition, in this project, he used different optimization techniques, stochastic processes, simulation, and data analytics with applications in logistics and supply chain management of the electric utility resources to improve the revenue management, quality, and reliability of the electric supply of Hydro-One.

After IBM, Dr. Ahmed moved to work with the Independent Electricity System Operator (IESO) of Ontario, Canada, as a Power System Engineer for two years (2014 – 2015) where he contributed to the operation of the bulk power system in North America. Dr. Ahmed worked with the System Performance Department in developing and maintaining power system models using PSS/E and DSA tools for power flow, short circuit, and transient and dynamic stability analysis of the IESO controlled grid and to develop static and dynamic network equivalents for off-line and online applications. During his assignment with IESO, he was the main key resource in developing the first market for Demand Response in Ontario, named Demand Response Auction started in December 2015. To design the market, Dr. Ahmed started with the High-Level Design concepts and then he drafted the Detailed Design document and the business requirements. To develop the tool, he had to do extensive modeling for the IESO tool requirements including formulating the objective function and the different constraints, and then the tool used the MILP optimization method.

In 2016, Dr. Ahmed moved to SNC-Lavalin, Grid Solutions Department, Hydro and Power Delivery, Toronto, Canada, as a Senior Planning Engineer. SNC-Lavalin is one the largest EPC (Engineering, Procurement, and Construction) companies in the world with more than 70,000 employees across the globe. He was responsible for different national and international projects and renewable projects in North America and in the Middle East; these projects include Master Plans for different countries, FERC 1000 regional and interregional competitive transmission projects in different US footprints, pre-feasibility studies and connection impact assessments for large loads, conventional generation and renewable energy projects.

Starting January 2019, Dr. Ahmed joined back IESO, as a Senior Specialist Forward Markets & Adequacy, Market Renewal Program to contribute to the largest project that IESO have ever had, this Market Renewal Program was to introduce a new Capacity and Energy Market design and to overcome the deficiencies that the Energy Market had since it is started in 2002. Dr. Ahmed took major roles in the two projects, and they started by scoping, preparing High-Level Design (HLD), interacting with Stakeholders to get their feedback on the HLD, update the HLD, prepare the Detailed Design (DD) documents, interacting with Stakeholders. After that, publish updated version of the DD, prepare the business requirement (BRD) document and the Functional Specification Document (FSD), drafting the regulatory framework (i.e. Market Manuals and Market Rules), the implementation phase, and testing. For almost a year, Dr. Ahmed was leading a group of engineers to design the auction mechanics for the Capacity Auction in Ontario, he interacted with the most experienced consultant in North America “Brattle Group”, he had day-to-day interactions with them, and then he led the interactions with the Accenture as a vendor to implement the auction engine. Since January 2020, Dr. Ahmed moved to the Energy side, Dr. Ahmed is currently responsible for the Market Power Mitigation (MPM) design, and implementation in the new Calculation Engine, the vendor of the calculation engine is ABB (Hitachi-Energy). Dr. Ahmed is leading the interactions with HAPG to make sure the new engine meets all the business requirements.

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Fee & Credits

$2595 + taxes

  • 2.5 Continuing Education Units (CEUs)
  • 25 Professional Development Hours (PDHs)
  • ECAA Annual Professional Development Points

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