Printable Version

Energy Imbalance Markets

The anticipated growth of variable renewable generation, such as solar and wind power, in the West has raised

concerns about how system operators will maintain balance between electricity production and demand in the

Western Interconnection—and especially in its smaller balancing authority areas. This concern helped motivate a

proposal to develop an energy imbalance market. An energy imbalance market aggregates the variability of

electricity generation and load for multiple balancing authority areas and utility territories, and performs a

5-minute security constrained economic dispatch. This can increase the economic efficiency of the power system.

This subhourly, real-time energy market provides centralized, automated, and region-wide generation economic

dispatch. By increasing the temporal and geographic footprint of the total balancing authority area, the market

could moderate the variability of renewable generation resources and electricity demand.

NREL has worked with the Western Electricity Coordinating Council and others to assess the potential ramping

and reserve benefits of several forms of an energy imbalance market. At the request of public utility

commissioners in the West, NREL used a detailed electricity production simulation model to obtain deeper insights

into the potential benefit of alternative forms of an energy imbalance market. The results were shared with utility

commissioners and other stakeholders to inform future decision making for Western Interconnection operations.

In 2014, the California Independent System Operator (CAISO) and PacifiCorp will begin operating an energy

imbalance market, and NV Energy is expected to join in 2015. Through the MC Initiative, the Northwest Power

Pool is currently investigating similar wide-area economic dispatch models, and will evaluate whether an energy

imbalance market or similar market will be developed.

For More Information

For more information about NREL's work on energy imbalance markets, see the following resources. Additional

publications can be found in the NREL Publications Database.

Energy Imbalance Markets

This fact sheet provides an overview of energy imbalance markets.

Examination of Potential Benefits of an Energy Imbalance Market in the Western Interconnection

This study focuses on identifying the potential benefits of an energy imbalance market in the year 2020.

Operating Reserve Reductions From a Proposed Energy Imbalance Market With Wind and Solar Generation

in the Western Interconnection

This paper considers several forms of an energy imbalance market proposed in the nonmarket areas of the

Western Interconnection and their impact on system operating reserves.

Flexibility Reserve Reductions From an Energy Imbalance Market With High Levels of Wind Energy in the

Western Interconnection

This paper considers several forms of an energy imbalance market proposed in the nonmarket areas of the

Western Interconnection and their impact on system flexibility reserves.

Alternative Approaches To Calculate Benefits of an Energy Imbalance Market With Wind and Solar Energy

This paper estimates reserve requirements for regulation, spinning, and non-spinning reserves with and

without an energy imbalance market. It also covers alternative approaches to allocating reserve

requirements and shows that some allocation methods have undesired consequences.

Operating Reserve Implication of Alternative Implementations of an Energy Imbalance Service on Wind

Integration in the Western Interconnection

This paper describes an energy imbalance market's implication on operating reserves under several

alternative scenarios of market footprint and participation.

Contact

Michael Milligan

303-384-6927

Printable Version

 Transmission Grid Integration

Home

Issues

Projects

Western Wind & Solar

Integration Study

Eastern Renewable Generation

Integration Study

Oahu Wind Integration &

Transmission Study

Hawaii Solar Integration Study

Solar Integration National

Dataset Toolkit

Wholesale Electricity Market

Operations

Energy Imbalance Markets

FESTIV Model

Active Power Controls

Generator Modeling

Forecasting

Grid Simulation

Transmission Planning &

Analysis

Research Staff

Working with Us

Publications

Webinars

Data & Resources

News

Did you find what you needed?

Content Last Updated: May 27, 2015

SEARCH

NREL: Transmission Grid Integration - Energy Imbalance Markets http://www.nrel.gov/electricity/transmission/energy_imbalance.html

1 of 2 8/31/2015 7:58 AM
Need Help? | Security & Privacy | Disclaimer | NREL Home

NREL: Transmission Grid Integration - Energy Imbalance Markets http://www.nrel.gov/electricity/transmission/energy_imbalance.html

2 of 2 8/31/2015 7:58 AM