Smart, flexible and responsive future electric power markets

The ISO market design has evolved over time using traditions development, economic theory, power system operations heuristics and operational experience. Early market design made simplifying assumptions and approximations often due to the inability to solve the more detailed design. Complicating features in market design such as reactive power, unit commitment, switching of transmission assets, renewable generation, storage and demand participation make the market non-convex and add new uncertainties. We examine the need and ability to solve more complex market models and the role of price signals, incentives, market power and settlements.