Prices during peak demand hours are critical for the economic efficiency of electricity markets. During peak times, quick-starting peaking units are usually started and dispatched. In the tightest hours, operators may take emergency actions to increase the real-time supply or decrease demand. Efficient pricing in peak hours requires that the costs of these actions be...
In centrally-organized electricity spot markets, resources are scheduled and dispatched to meet anticipated demand plus a margin of operating reserves. When energy demand is met and operating reserves are maintained, the system is secure. At times, due either to unanticipated demand or resource outages, the system is in shortage and does not have resources available...
A multi-settlement market is a centrally-organized electricity market where physical electricity products are bought and sold initially on a forward basis and then resettled in relation to actual production and consumption in the real-time operating horizon. In the U.S. and in other parts of the world with advanced electricity markets, the forward market is organized...