A market simulation program for the standard market design and generation/transmission planning

Abstract

To enhance competition in wholesale electric markets and broaden the benefits and cost savings to all wholesale and retail customers, the Federal Energy Regulatory Commission (FERC) proposed a standardized wholesale market design to provide more choices and improved services to all wholesale market participants; reduce delivered wholesale electricity prices through lower transaction costs and wider trade opportunities; improve reliability through better grid operations and expedited infrastructure improvements; and to increase certainty about market rules and cost recovery for greater investor confidence to facilitate much-needed investments in this crucial economic sector. Under this context, the authors attempt to address how a market simulation program, such as ABB's GridView, should adjust itself to improve its functions to meet the requirements proposed by FERC in the standard market design (SMD). The traditional generation and transmission planning process should be reviewed under the new era and a market-based power system planning process has been proposed.