Class Syllabus

Professional masters class. We will define and discuss the major problems in power system economics: optimization problem formulations and solutions; competition; bidding strategies; locational marginal prices; ancillary services; and investment decisions. For more information, see syllabus.

This is the main website for this class. The Canvas Site is only used to post grades.

Class: Tuesday, 6pm-9pm, EEB 003
Instructor: Baosen Zhang,, Office: EEB M310
TA: Yishen Wang,, Office: EE 215

Office Hours:

  1. I will have office hours on Monday from 5pm to 6pm. You can come to my office or chat with me via skype. Skype id: baosen.zhang
  2. Yishen will have office hour on Monday 6pm to 7pm and Friday 5pm to 6pm
  3. You’re welcome to schedule other times by emailing one of us


  1. Most of the lectures will be done on the board. Corresponding slides would be provided, but the material presented on the board may differ from them.
  2. Textbook: Kirschen & Strbac Fundamentals of Power System Economics
  3. I will try to respond to emails within 24 hours. Please write EE559 in the subject. Yishen will likely be more responsive.

Schedule of Classes:

  1. Introduction to power system economics, economic dispatch and optimization slides 1, slides 2
  2. Optimization techniques slides
  3. Unit Commitment slides
  4. Introduction to mixed integer programming, Optimal power flow slides, supplementary notes on optimization
  5. Markets for electrical energy, Participating in electricity markets slides
  6. Markets for electrical energy, Participating in electricity markets
  7. System security and ancillary services
  8. Transmission networks and electricity markets
  9. Investing in generation and transmission
  10. Current Research in Power System Economics

Optimization Software

  1. You can use Matlab if you feel more comfortable
  2. We recommend using Julia. We will mainly code from JuliaBox. It is open source, online and often easier to use than Matlab. Yishen has prepared some material for it: Quick Guide, Example 1, Example 2, Example 3


  1. There will be weekly homework assignments. No late homework would be accepted.
  2. Grade distribution: final 50%, homework 40%, class participation 10%

Homework Assignments:

  1. Homework 1, due Apr 5th 8pm, email to, pdf, solution
  2. Homework 2, due Apr 12th 8pm, email to, pdf, solution
  3. Homework 3, due Apr 19th 8pm, email to, pdf, solution, code 1, code 2
  4. Homework 4, due May 3rd 8pm, email to, pdf