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## Energy Imbalance Markets The anticipated growth of variable renewable genera tion, such as solar and wind power, in the West has raised concerns about how system operators will maintain b alance between electricity production and demand in the Western Interconnection—and especially in its smalle r 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 balanc ing authority areas and utility territories, and pe rforms a 5-minute security constrained economic dispatch. Th is can increase the economic efficiency of the powe r system. This subhourly , real-time energy market provides centralized, aut omated, and region-wide generation economic dispatch . By increasing the temporal and geographic footpri nt of the total balancing authority area, the marke t could moderate the variability of renewable generat ion resources and electricity demand. NREL has worked with the Western Electricity Coordi nating 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 simul ation 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 futu re decision making for Western Interconnection oper ations. In 2014, the California Independent System Operator (CAISO) and PacifiCorp will begin operating an ene rgy 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 e conomic dispatch models, and will evaluate whether an energy imbalance market or similar market will be develope d. 

### For More Information For more information about NREL's work on energy im balance markets, see the following resources. Additional publicationscan be found in the NREL Publications Database. Energy Imbalance Markets This fact sheet provides an overview of energy imba lance markets. Examination of Potential Benefits of an Energy Imba lance Market in the Western Interconnection This study focuses on identifying the potential ben efits of an energy imbalance market in the year 202 0. Operating Reserve Reductions From a Proposed EnergyImbalance Market With Wind and Solar Generation in the Western Interconnection This paper considers several forms of an energy imb alance market proposed in the nonmarket areas of th e Western Interconnection and their impact on system operating reserves. Flexibility Reserve Reductions From an Energy Imbal ance Market With High Levels of Wind Energy in the Western Interconnection This paper considers several forms of an energy imb alance market proposed in the nonmarket areas of th e 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 regul ation, 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 Implem entations of an Energy Imbalance Service on Wind Integration in the Western Interconnection This paper describes an energy imbalance market's i mplication on operating reserves under several alternative scenarios of market footprint and parti cipation. 

### Contact Michael Milligan 303-384-6927

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

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

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