Master of Public Policy   Master of International Affairs  

Electricity market design

Electricity markets and the prices that emerge from trading on these markets drive the energy transition. It is traders, rather than power plant engineers, who decide which power station is dispatched. It is the prices that provide the incentives for investment and innovation and that they drive out (or not) polluting generators. It is the market that will ultimately determine if new energy technologies thrive or dive. But robust electricity market design is not only fundamental for the energy transition, it is also fundamental for security of supply – while in other industries, perverse incentives cause waste of resources, in electricity markets they may well cause large-scale blackouts of the power grid. Robust price signals are necessary to drive investments in peaking power plants, and are equally important to make sure all power stations are producing when electricity demand is high. Electricity market design is complicated, but too important to be left poorly understood.

This course trains students in liberalised electricity markets, in particular in Europe. More specifically, it has a dual objective. First, it equips students with the knowledge to design robust and efficient electricity markets. Second, it trains students in trading on electricity systems (sometimes by exploiting weaknesses in market design).

This course is for 2nd year MIA and MPP students only.


  • Lion Hirth , Assistant Professor of Governance of Digitalisation and Energy Policy