Category: 📘 Glossary & Acronyms
Electricity Market
A system in which electricity producers and consumers interact through rules and market mechanisms that determine how electricity is supplied and priced.
Electricity markets coordinate the production and consumption of electricity by allowing generators to offer electricity for sale and system operators to determine which resources are needed to meet demand.
Electricity markets help ensure that:
Market rules define how electricity prices are calculated and how transactions between participants are settled.
Electricity markets operate alongside the physical electricity system and must account for the operational constraints of power generation and transmission infrastructure.
Generators submit offers into the electricity market, and the system operator selects the generators needed to meet electricity demand.
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