Efficient Allocation of Reserve Costs in RTO Markets

RTOs’ make-whole payments for generation commitment are needed partly because of flaws in the design of reserve markets. Markets might be made more efficient with greater locational differentiation in reserve prices and incorporation of make-whole payments into reserve prices.

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Bibliographic Details
Published in:The Electricity journal 2006, Vol.19 (8), p.43-51
Main Authors: Kirsch, Laurence D., Morey, Mathew J.
Format: Article
Language:English
Subjects:
ALLOCATIONS
CAPACITY
COST
ENERGY PLANNING, POLICY AND ECONOMY
MARKET
POWER GENERATION
POWER TRANSMISSION
POWER TRANSMISSION AND DISTRIBUTION
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Description
Summary:RTOs’ make-whole payments for generation commitment are needed partly because of flaws in the design of reserve markets. Markets might be made more efficient with greater locational differentiation in reserve prices and incorporation of make-whole payments into reserve prices.
ISSN:1040-6190
1873-6874
DOI:10.1016/j.tej.2006.09.002