Review of the Proposed Reserve Markets in New England
Review of the Proposed Reserve Markets in New England
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Date
2005-01
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Citation
"Review of the Proposed Reserve Markets in New England," (with Hung-po Chao and Robert Wilson) White Paper, Market Design Inc., January 2005.
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Abstract
ISO New England proposes reserve markets designed to improve the existing forward reserve market and improve pricing during real-time reserve shortages. We support all of the main elements of the proposal. For example, we agree that little is gained by allowing reserve availability bids in the day-ahead market. Doing so greatly increases the complexity of the market without the prospect of more efficient pricing. Rather, offline reserves are most efficiently priced and awarded well in advance, as is done by the improved forward reserve market.