This chapter introduces the key concepts related to the electricity supply industry (such as load duration curve, capacity factor, and load diversity) and provides simple decision-making tools such as merit order dispatch, levelised costs and screening curves used in the traditional electricity system. The chapter also presents the features of the competitive electric power markets and sketches the evolution of the electric power industry in a carbon constrained world.
KeywordsElectricity concepts Levelised costs Screening curves Markets Pricing Ancillary services
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