Smart Grid Economics and Information Management

Key Info

Basic Information

Organizational Unit:
Univ.-Prof. Dr. rer. soc. oec. Reinhard Madlener

Further Information



The scope of the lecture is economics and information management of energy markets. The integration of the growing number of renewable energy sources imposes new challenges on energy markets and the power system. For a better coordination of supply and demand it is necessary to interlink centralized and decentralized generators, storage devices, as well as consumers with each other by means of information and communication technologies (ICT). Current electricity networks are extended by intelligent ICT components thus incorporating the "Smart Grid". The existing market structures for electricity have to be adjusted in order to successfully integrate an increasing number of renewable energy producers, electric vehicles and revamped concepts like demand side management/demand response. The regulatory and economic aspects of electricity markets with an explicit focus on the "Smart Grid" will be covered in detail during this course.

Course outline

  1. Electricity Markets - Market Models, EEX (spot and futures market), Over-the-Counter (OTC) Trade, Market Coupling
  2. Regulation - Charges and Incentive Regulation, Network Congestion Management
  3. Demand Side Management/Demand Response - Smart Metering, Dynamic Electricity Tariffs, Price Elasticity, Storage Systems, Electric Mobility
  4. Advanced Pricing in the Smart Grid - Temporal Pricing, Spatial Pricing, Price Elasticity

Target audience

This course is primarily targeted to students in the M.Sc. Program in Economics and Industrial Engineering. Students enrolled in different programs with a background in micro and macroeconomics are welcome, too.


Basic knowledge in Economics (Micro/Macro) and Energy Economics.

Literature (selection)

  • Erdmann G, Zweifel P. Energieökonomik, Theorie und Anwendungen. 1. Aufl., Berlin-Heidelberg: Springer; 2007. (or 2. Aufl.)
  • Grimm V, Ockenfels A, Zoettl G. Strommarktdesign: Zur Ausgestaltung der Auktionsregeln an der EEX. Zeitschrift für Energiewirtschaft; 2008:147-161.
  • Harris C. Electricity Markets: Pricing, Structures and Economics . John Wiley and Sons; 2006.
  • Stoft S. Power System Economics: Designing Markets for Electricity. IEEE Press; 2002.
  • Ströbele W, Pfaffenberger W, Heuterkes M. Energiewirtschaft: Einführung in Theorie und Politik. 2nd ed. München: Oldenbourg Verlag; 2010:349.