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Contents

Introduction to Power Market

Real-Time Market

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Power Markets (1)

Power markets are theonly markets that can

suffer an instability whichoccurs in less than asecond like a blackout. Inthis consideration, thepower market should be

controled instantaneously.

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Market vs. System perator Market Operator: Operateand/or facilitatethe

market

Registration of market participants

Receiving bids offers from market participants Market clearing

Settlement and invoicing

System Operator: Operatethesystem, ensurereliabilityandsecurity

Real-time dispatch to balance supply and demand

Managing ancillary services to maintain system reliability

Manage congestion

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Basic Market Models

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The Real-Time Market

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3

No bids

No contract (all Forward)

A price is announced then

suppliers and customers

respond.

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The Real-Time Market (2)

Real-time sales are not under contract!!

1. Exception: PJMs RT pool (Make-whole)

2. Would raising the RT price raise the cost of thepower? (price during 5 min. of the contract)

3. Suppose there is a contract !!

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The Real-Time Market (3)

Suppose there is a contract!!

Is this an exception of RT market to have a contract?

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80 MW

Expected delivery

50 MW

Delivery made

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What determines the Real-Time Price?

The RT price is determined by total actual supply anddemand.

This includes power traded under forward contractsand in the RT market.

Supplier paid: Q1 x (P1 P0) + Q0 x P0 ( loopholes)

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Why Real-Time Markets are not Purely Bilateral

Most markets operate as bilateral. Why is RT not?

Provision of ancillary services.

Speed and capability of bilateral market.

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Thank you for your attention!