37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the (2004)
Big Island, Hawaii
Jan. 5, 2004 to Jan. 8, 2004
David Watts , Universidad Cat?lica de Chile
Fernando L. Alvarado , University of Wisconsin and Christensen Associates
Markets can interact with power systems in ways that can render an otherwise stable market and an otherwise stable power system into an unstable overall system. This unstable system will be characterized not only by fluctuating prices that do not settle to constant values, but, more worrisome, it creates the possibility of inducing slow electromechanical oscillations if left unchecked. This will tend to happen as a result of "price chasing" on the part of suppliers that can react (and over-react) to changing system prices. This paper examines the role that futures markets may have on the clearing prices and on altering the volatility and potential instability of real time prices and generator output.
F. L. Alvarado and D. Watts, "The Influence of Futures Markets on Real Time Price Stabilization in Electricity Markets," 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the(HICSS), Big Island, Hawaii, 2004, pp. 20048a.