Risk constrained power system operation and market efficiency: A market participant´s perspective

Summary form only given. Power system planning and operation is designed to ensure sufficient reserve margins and the ability to adequately withstand sudden events or contingencies such as outages of transmission lines, transformers and generators. Approaches to address the planning aspects have been discussed under the topic of Resource Adequacy and continue to evolve. Approaches to address operational aspects involve decisions on constraint representation and can have a direct impact on market prices. These approaches can vary in terms of being transparent or opaque to market participants. In this presentation we will review experiences in selected markets regarding these issues - i.e., what is good, bad or just plain ugly. The impact of integrating renewable resources will also be discussed.