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The opportunities and challenges of implementing a smart electric supply system are discussed, including how to integrate the local public goods of electric system reliability, and increasingly of environmental compliance, in an efficient way. The full potential of the smart grid cannot be attained, however, without the wide-spread availability of real-time pricing for electricity so that all parties,...
The ISO market design has evolved over time from traditions, economic theory and power system operations heuristics. Early market designs made simplifying assumptions and analyzed a convex market. With these assumptions, the tendency has been to analyze the markets under the neoclassical market paradigm. Complicating features in market design such as reactive power, unit commitment, pricing and switching...
ERCOT is transitioning from a current zonal market to a newly redesigned nodal market. In the new ERCOT nodal wholesale market, a Reliability Unit Commitment (RUC) process is designed and implemented to ensure transmission system reliability and security. The main objective of RUC is to ensure that enough resource capacity, in addition to ancillary service capacity, is committed in the right locations...
Security constrained optimal power flow programs are important tools for ensuring correct dispatch of supply while respecting the many constraints imposed by the delivery system. In addition to getting the dispatch right, locational prices must be calculated with equal precision in order to infuse market participants with the proper incentives for operation and investment. In this paper we discuss...
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