The Real-time Energy Markets (con't)
Real-time Operating Reserve (OR) Market
There may be occasions when the balance between generation and load is affected by an unanticipated event, such as equipment failure or emergency. Spare capacity that can be called upon on short notice is required to restore the balance in the case of such an event. This spare capacity is called operating reserve.
The IESO administers three separate Real-time Operating Reserve markets to provide a market-based way for the IESO to quickly replace the supply of electricity for a short period of time until requirements can again be supplied from normal dispatch:
Payments in the Operating Reserve Market
As with the energy market, a market clearing price is determined for each of the three operating reserve markets. The IESO considers the offers in order of increasing price, then selects the necessary resources to meet its requirements. (In practice, the market clearing price and dispatch instructions for operating reserve are determined jointly with the Real-time Energy market clearing price and dispatch instructions.)
Operating reserve offers are essentially stand-by offers. All accepted offers are paid the market clearing price for that class of operating reserve, regardless of whether or not the reserve is actually used. These payments are stand-by payments. For operating reserve that is actually used, the suppliers are paid for the energy provided.
Who Can Offer into the Operating Reserve Market?
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