EEoEM STUDY CONSOLE WOLAK · SSE/IFN · 08–12 JUN 2026 ZONE SE3 · STOCKHOLM
SOC 0%

The Engineering Economics of Electricity Markets — companion console

Every result is a best reply to a residual demand curve.
Charge the framework. Discharge it into your storage models.

One instrument for the whole programme: the ten course modules (Part I), the BESS bridge that re-derives them for storage (Part II), and the 12-week plan (Part IV). Progress here is literal state of charge — completing weeks charges the battery.

Π′ = 0  ⇒  markup = 100·η · (DR − Q_C)/DR  ·  for storage: c = λ_t/η_d + φ′
MW (PS2 fleet · 1 920 MW) €/MWh charge: p ≤ η_c·λ_t − φ′ discharge: p ≥ λ_t/η_d + φ′ λ_t — energy moved through time (the SOC shadow price) €60 €10
The course in one picture. The PS2 merit order sets the price landscape; a battery buys where the stack is cheap, sells where it is steep, and its true marginal cost is the shadow price λ_t — a hydro reservoir's water value with a power-electronics accent. Strategic behaviour shows up as under-arbitrage: doing less of both, on purpose.
Part I

The ten modules

Each card is one module of the companion: its lecture source, the objects it adds to your toolkit, and a one-line storage translation. Mark modules done as you pass their self-tests — module completion feeds the console SOC alongside the weekly tracker.

Dependencies

The one-thread map

How the modules feed each other, and where Part II taps in. Read columns left to right: foundations → conduct → networks → design layers → your research programme.

M1 costs &regulation M5 physics,DC-OPF, LMP M2 residualdemand · η M6 zonal vsnodal · INC/DEC M3 contractsη^C · pivotal M4 crisis &benchmarking M7 hyper-surfaces M8 multi-settlement M9 adequacySFPFC · ELCC M10 grid &retail PART II — BESS BRIDGE λ_t · two-sided η · MPEC
Part II.5

The modelling ladder

Five rungs from price-taker to closed-loop. Know which rung each question needs — and which assumption you are buying at each step.

1

Price-taking dispatch, perfect foresight

LP/MILP, exogenous prices. Keep the SOC duals — they are λ_t, the asset's true marginal cost curve.

use for: first-cut valuation · small assets · benchmark conduct
2

Price-taking, stochastic

Scenario trees, SDDP, rolling intrinsic across DA→ID→RT→AS gates. The battery as a strip of spread options; λ_t becomes an exercise boundary.

use for: bid curves under uncertainty (the PS4 ex-ante logic)
3

Strategic single agent — bilevel / MPEC

Your offer curve upstairs, the PS3 DC-OPF clearing downstairs. Quantifies your own price impact and optimal under-arbitrage.

use for: fleet price impact · conduct screens · task II-C
4

Equilibrium — EPEC / SFE / hypersurfaces

Everyone strategic at once. Graf–Wolak's estimated residual-demand hypersurfaces are the empirical shortcut; the SOC-coupled temporal extension is open territory.

use for: market design counterfactuals · the research programme
5

Learning / closed-loop

RL or ADP when the environment shifts faster than equilibrium recomputation. Validate learned policies with rung-3/4 conduct objects — offer-vs-λ wedges are the sanity check.

use for: fast-moving AS markets · regime-change stress tests
Part IV

Twelve weeks · one charge cycle

Click a week when its Read / Derive / Build strands are done. Weeks 1–4 consolidate the course, 5–8 execute the bridge, 9–12 reach the frontier. Progress lives on this page only — use the export code to carry it between sessions or machines.

consolidate · M1–M6bridge · λ_t, η^C, stackfrontier · MPEC → paper
0 % SOC
Empty tank. Week 1 is cost concepts and the Averch–Johnson derivation — two evenings, one notebook.
Part III

Rule-change watchlist

The landscape items that move your models' assumptions. Run the three-pillar checklist (physics · incentives · legal) on every new consultation that touches these.

2018 / 2020FERC Orders 841 & 2222US storage + DER-aggregation participation rights; the constitutional layer
JUN 2024EU Electricity Market Design reform in forceflexibility needs assessments · non-fossil flexibility support · two-way CfDs · capacity mechanisms normalised
2024Nordic intraday auctions + flow-based day-ahead couplingzonal limits now endogenous to network state — ingest the PTDFs
SEP 202515-minute MTU in single day-ahead couplingre-estimate every hourly backtest; granularity favours fast assets
2025Bidding-zone review concluded · Nordic status quo, methodology contestedhold exposure maps per studied configuration — re-zoning is valuation risk
JAN 2026ISO-NE day-ahead state-of-charge parameters liveSOC management migrating into the clearing engine — watch where λ_t gets computed
OPENSvK accession to PICASSO / merit-order aFRR activationa regime break in the aFRR residual demand — scenario-tree the date