The essentials
- An Energy Imbalance Market (EIM) would pool in electricity generation within a region and dispatch resources.
- This could moderate the variability of renewable generation resources and electricity demand on a least-cost basis. Participation is voluntary.
- The Public Utility Commission Energy Imbalance Market1 has proposed an EIM for the Western Interconnection.
- The EIM would lead to lower reserve requirements and increases reliability especially during unexpected generation outages and high peak demand.
- The EIM brings with it concerns about new reliability problems and costs that could outweigh the estimated benefits.