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AncillaryServices.KirschenChapter5Slides.LTEdits.pdf

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Introduction<br />

Section 5.1 (pp. 105-106)<br />

• Wholesale electric energy markets rely on transmission<br />

grids to support energy trades<br />

• Participants in any given wholesale electric power<br />

market have no choice regarding this transmission grid –<br />

they must use the given grid<br />

• Grid outages impose high costs on market participants<br />

• Participants value system reliability (preventive and<br />

corrective actions to maintain normal grid operations)<br />

• But the cost of reliability should not exceed its benefit<br />

© Daniel Kirschen & Leigh Tesfatsion 2011 4

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