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Energy Market
Green Final
Term | Definition |
---|---|
Theoretical electricity grid path from generation to use | Power plant to transmission substation to high voltage transmission lines to power substation to transformer to transformer drum to house |
Summer load pattern | trough at 4am, builds throughout day as AC kicks on then falls at night |
Winter load pattern | Not as low trough at 4am, morning spike with lights and coffee, falls during day, then spikes in evening with lights on and tv |
real time energy market frequency | typically clears every 5 minutes |
near term energy market | day-ahead energy market approximately one day forward |
LMP acronym | locational marginal pricing |
LMP system | major US markets use it, create hourly and sub-hourly prices at every locations |
LMP formula | = energy cost + marginal congestion costs + marginal losses |
why offtake PPA is important | project finance structure with huge debt is ill-suited for absorbing price shocks, need someone who can like Utility, corporate entities, creditworthy retail customers, hedging counterparty |
ISO acronym and meaning | Independent Service Operator, essentially who manages the connection between generator and user |
capacity markets | ISOs will pre-auction capacity for various zones to ensure capacity will be available for reliability |
Where is generator paid | at location |
Where does load pay | at its location on the grid |
locational price basis | difference in price between generator and purchasing utility |