Real-time energy market design and operations challenges at the ISO New England

On March 1, 2003, ISO New England launched its LMP based energy market for both real-time and day-ahead. Under this SMD implementation, the day-ahead market is a financial forward market, which does not enforce obligation on the physical generating resources to provide energy, while the real-time market involves the dispatch of physical resources to serve the real-time load in a secure and reliable manner. In this paper an over view of the real-time energy market in ISO New England is presented. Also, some operations and design challenges of the energy market was discussed.