The California Independent System Operator Corp. (California ISO) has successfully launched its market redesign and technology upgrade (MRTU).
This program brings increased grid and market efficiencies; reduces barriers to alternative resources of power, such as demand response and green generators; and gives grid operators new tools for managing transmission bottlenecks and dispatching the most cost-effective power plants, according to California ISO.
‘We now have a grid that is a modern and efficient machine, with market and grid applications that enhance reliability while providing the flexibility and visibility of an intelligent grid,’ says California ISO President and CEO Yakout Mansour.
While the new market structure represents major steps forward in how the ISO, power generators and utilities do business, the average energy consumer will not see any immediate changes, because the new changes affect the wholesale – not the retail -electricity markets.
The new markets create power trading transparency by showing the cost of generating power at a certain location, as well as the actual delivery price. This is possible because there are now 3,000 pricing nodes compared with just three pricing zones. This fine level of detail reveals key market signals and means grid logjams can be more easily addressed, which prevents the need to buy more expensive power at the last minute, according to California ISO.
SOURCE: California Independent System Operator Corp.