A comprehensive and up-to-date discussion of the economic rationale behind the production, delivery and exchange of electricity. A must read for those who want to learn and teach the specificities of electricity markets and understand how these markets can be optimally designed to produce and deliver electricity effectively and efficiently.

Explains the economics of electricity at each step of the supply chain: production, transportation and distribution, and retail.

'This book fills an important gap in the market for a graduate level textbook of electricity economics that sets out the physics, mathematics, economics and institutional elements needed to understand modern electricity markets. A mastery of this excellent text should provide a solid grounding to enable the student to understand, and ideally contribute to, the electricity economics literature, which can appear complex and daunting to even a well-trained micro-economist or electrical engineer.' David Newbery, Director of the Energy Policy Research Group (EPRG), University of Cambridge