Evaluating dispatchability features in competitive bidding [in power systems]

Competitive bidding for electric generating capacity is beginning to emphasize dispatchability. The authors examine various aspects of the evaluation problem facing electric utilities. Recent private power contracts are used to illustrate the range and limits upon flexibility that are being offered. Only detailed production simulation models can capture the cost implications of the features being offered. The value of the dispatchability was found to increase with the variable cost of operation. The most important cost found was associated with projects offering only limited curtailment. Procedures for incorporating subtle dispatch effects in a broader evaluation framework are identified