Wholesale Electricity Market Modeling and Pricing presented by Dr. Anthony Giacomoni - Session 2

For nearly two decades, electricity markets have existed to facilitate the buying and selling of electricity at the wholesale level and to ensure the constant availability of competitively priced electricity. Electricity markets, however, are very different from traditional markets. They are designed to help ensure system reliability and prices are determined by an algorithm. This tutorial will discuss the fundamental aspects of how electricity markets in the U.S. are currently modeled and operated, and how prices are determined. Several examples will be used to help present these concepts. In addition, some frameworks to integrate carbon pricing into wholesale electricity markets will be discussed. Session 2 - Review of Session 1 - Electricity Market Current Practices - Locational Marginal Pricing (LMP) and Congestion - LMP Calculation and Components