Grid Monitoring and Market Risk Management

The advent of electricity market deregulation has placed great emphasis on information availability and analysis and the subsequent decision making to optimize system operation in a competitive environment. This creates a need for better ways to correlate market activity with the physical grid-operating states in real time and share such information among market participants. Command and control choices might result in different financial consequences for market participants and severely impact their profits. The effects are both short term, as in day-ahead and real-time markets for energy, reserves, and congestion relief, and long term, as in investments in transmission and generation capacity. Be cause of this, new solutions are necessary to integrate grid control and market operations while accounting for both good engineering practices and appropriate economic incentives.