Fundamentals and Practice of Electricity Market

This document provides a comprehensive overview of the fundamentals and practice of electricity markets, covering the historical development, basic theory, and core elements of electricity trading. It compares global market models, including the vertically integrated monopoly and independent trading models, with case studies from the UK, US, and China. The UK's evolution from monopoly to decentralized market (NETA/BETTA) and the US's centralized market reforms (FERC orders) are detailed. China's electricity reform, initiated by Document No. 5 and No. 9, is analyzed, highlighting the transition from vertical integration to market-oriented structures, the role of cross-subsidies between residential and industrial users, and challenges in full marketization. Key issues such as pricing dual-track systems, grid agency models, and the need to eliminate cross-subsidies for complete market liberalization are discussed. The document serves as a guide for understanding electricity market dynamics, reform progress, and future directions in the new energy industry.