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Introduction to Energy Imbalance Markets: Part I

Posted on May 24, 2013 by

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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.