AncillaryServices.KirschenChapter5Slides.LTEdits.pdf
AncillaryServices.KirschenChapter5Slides.LTEdits.pdf
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