Title :
Key Elements of a Successful Market Design
Author :
Ma, Xingwang ; Sun, David
Author_Institution :
AREVA T&D Inc., Bellevue, WA
Abstract :
Key elements of a successful market design are discussed in this paper with reference to several US markets in Mid-Atlantic (PJM), New England (ISO-NE) and Midwest (MISO) regions. The key market elements discussed include: locational marginal pricing (LMP), financial transmission right (FTR) and co-optimized energy and ancillary service market. As critical components of a successful market design, risk hedging mechanisms are presented including multi-settlement scheme, virtual bidding and bilateral contracts. A capacity market construct is presented that is under development in the US and is intended to provide price signals for long-term generation and transmission investments. Examples are used to demonstrate the workings of the key market elements
Keywords :
contracts; power markets; power system economics; power system management; power system reliability; pricing; risk management; Mid-Atlantic region; Midwest region; New England region; US markets; ancillary service market; bilateral contracts; capacity market construct; co-optimized energy; financial transmission right; locational marginal pricing; long-term generation; market design; multisettlement scheme; risk hedging mechanisms; risk management; system reliability; transmission investments; virtual bidding; Command and control systems; Contracts; Costs; ISO standards; Investments; Power generation economics; Pricing; Risk management; Signal generators; Sun; Market design; ancillary service; capacity market and risk management; financial transmission right; locational marginal pricing;
Conference_Titel :
Transmission and Distribution Conference and Exhibition: Asia and Pacific, 2005 IEEE/PES
Conference_Location :
Dalian
Print_ISBN :
0-7803-9114-4
DOI :
10.1109/TDC.2005.1546905
