Lecture 2

Question 1

What is the topics for the second lecture?

Answer 1

Optimality conditions
Profit maximization
Cost recovery

Question 2

What is the learning objectives of the second lecture?

Answer 2

Pricing of energy according to marginal costs/benefits
Optimal investments in thermal generation
…

Question 3

What is the optimization problem that we try to solve?

Answer 3

Find the plant capacities and operation which minimizes cost of delivered energy

Question 4

What is the constraints of the problem?

Answer 4

Plant constraints
Load balance constraints
Energy storage constraints
…

Question 5

What is the problem formulation in a free market

Answer 5

Find the plant capacities and plant operation which maximizes individual profits