Market characteristics for efficient integration of variable generation in the Western interconnection [electronic resource] / Michael Milligan and Brendan Kirby.
Imprint
Golden, CO : National Renewable Energy Laboratory, [2010]
In this report we address the interface between electricity markets and power system operation. Effective power markets are difficult to design. In our view, a simple test of the efficiency and effectiveness of electricity markets is to show that the markets provide the required level of reliability economically. Markets that cannot do this are judged to be inefficient, and should be modified to correct this shortcoming. The overriding purpose of this report is to establish the physical requirements of a power system that can accommodate high levels of variable generation (VG--wind, solar, and potentially others). We do not discuss whether any particular penetration of VG is appropriate or desirable, but endeavor to establish what is needed to accommodate high levels of VG.
