A resource’s true reliability value is its expected availability to provide energy or reserves when the system is at risk of load shedding. This value depends on (a) the timing of the system’s hours of greatest need and (b) the factors that affect the availability of a resource in those hours. Importantly, the hours of...
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...
Most spot electricity markets establish locational marginal prices (LMPs) that reflect the unique value of energy at each location or node on the network. Components of the LMP include the system marginal price, losses, and the cost of transmission congestion. When a transmission facility reaches its operating limit, higher-cost units must be dispatched instead of lower-cost...