Value of real-time information in competitive generation markets

This paper presents an analysis of the value of real-time information response. The paper describes how rapid response to market conditions, enabled by access to real-time market information (where real-time is on the order of minutes down to seconds), can impact peak electricity demand. Through rapid response from generation supply during peak demand periods, an effective average increase in generation capacity can be achieved. The average increase is achieved without an increase in annual combustion of fuels used to power generation plants. The benefit of increased effective capacity during peak demand periods without increased fuel consumption is realized through utilization of real-time market information systems, which are generally cheaper and quicker to implement than constructing new power plants.