This paper summarizes the bidding procedures proposed by NEPOOL for the Energy, Reserve, Automatic Generation Control (AGC), and Operable Capability markets. Experience with the Installed Capability market is also described. On October 29, 1997 FERC accepted NEPOOL’s previous filings proposing the implementation of the Installed Capability Market by November 1, 1997, but suspended its implement...

Three key issues have arisen for centrally-managed wholesale electric power markets in Europe and the United States as they attempt to handle an increased penetration of variable energy resources. First, rigid definitions for energy and reserve products make it difficult to ensure appropriate compensation for important needed flexibility in start-up times, ramp-rates, power dispatch levels, and...

Due to uncertain nature of wind and photovoltaic power units, the participation of this units in electricity markets is subjected to significant deviation penalties. This issue leads to despondency or even admission of these units in the competitive environment. With regard to this fact that the low deviations are available when predictions are performed in a short-term horizon and also distrib...

Three key issues have arisen for centrally-managed wholesale electric power markets in Europe and the United States as they attempt to handle an increased penetration of variable energy resources. First, rigid definitions for energy and reserve products make it difficult to ensure appropriate compensation for important needed flexibility in start-up times, ramp-rates, power dispatch levels, and...

O ver the last two decades, central banks around the world have adopted a common approach to monetary policy that involves targeting the value of a short-term interest rate. In the United States, for example, the Federal Open Market Committee (FOMC) announces a rate that it wishes to prevail in the federal funds market, where commercial banks lend balances held at the Federal Reserve to each ot...

In this paper security constrained unit commitment (SCUC) is employed for simultaneous clearing of energy and reserve markets. Spinning reserve of production units and interruptible loads (IL) are used as system operation reserve. Some restrictions on the use of interruptible loads, such as maximum load curtailed, maximum curtailment hour in a day, maximum length of each curtailment are also co...

The integration of renewable energy sources in the electricity production mix has an important impact on the management of the electricity grid, due to their intermittency. In particular, there is a rising need for flexibility, both on the supply and demand sides. This paper assesses the amount of flexibility that could be reserved from a set of flexible residential heat pumps in a given geogra...