Energy market fundamentals and overview

The energy market is basically a market handling process specifically with the trade and provision of energy, which may refer to the electrical energy market or other energy resources. Energy markets are known as a fast-growing and complicated sector considering their significant role in the global economies, the necessity of this sector in power and gas supply, and financial concerns of energy. This chapter aims to provide a comprehensive and updated review of the basics and operation models of the energy markets from the initial appearance to the status. This study concentrates on electrical energy markets since the primary reasons for the appearance of the energy markets are generation and transmission of electrical energy. The main challenges and dealings of the electrical energy markets, as well as various types of electrical energy markets, will be discussed in this chapter, and the fundamentals of their operation will be introduced. Various models will be proposed for the operation of energy markets and a deep comparison will be performed in terms of performance level and the advantages/disadvantages of the models will be determined.