Why the ancillary services markets in California don't work and what to do about it
- National Economic Research Associates, San Francisco, CA (United States)
many states and regional power pools are in the process of introducing or broadening the scope of competitive electricity markets. Various market designs have been proposed, but most of these have focused on launching competition into the energy market. The energy market is perceived to be the big-ticket item in this process, since most of the dollars are to be made in this market and this is the area where whole-sale competition already exists. Ancillary services, however, must not be ignored in this process. Each newly competitive market needs to put in place a way to deal with ancillary services in the new world. This article sets out to examine the physical and financial realities of the electric system which need to be taken into account when designing markets for ancillary services. It looks at the market structure in California, the evidence to date there, and proposes ways to improve the market design.
- OSTI ID:
- 6443420
- Journal Information:
- Electricity Journal, Vol. 12:5; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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