• DocumentCode
    136089
  • Title

    No title

  • fYear
    2014
  • fDate
    27-31 July 2014
  • Firstpage
    1
  • Lastpage
    1
  • Abstract
    In 1990s, self-interested market participants pined to assume away the physics of power systems and have ‘simpler’ markets. They argued that a market that honors the physics unnecessarily complicates markets. In an effort to make the market ‘easier’, we created fictions to make the market easier and broader. But you can´t fool Mother Nature, we now know empirically that the simple market is easier to manipulate and to date, the easier markets have failed. Evidence points to complexity for efficient commitment and dispatch. Since fictions are necessary because we cannot yet solve the more complicated market model with more physics. Care must be taken in creating fictions. In power systems, bad fictions can lead to cascading blackouts that are disruptive and very expensive. In ISOs, Complexity and Simplification co-exist. The day-ahead market and real-time market contain the necessary complexity to solve the complex operations problems. Financial market exists for those who want simplicity.
  • Keywords
    Complexity theory; Physics; Power system faults; Power system protection; Real-time systems;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    PES General Meeting | Conference & Exposition, 2014 IEEE
  • Conference_Location
    National Harbor, MD, USA
  • Type

    conf

  • DOI
    10.1109/PESGM.2014.6939947
  • Filename
    6939947