Review of the Proposed Reserve Markets in New England

Peter Cramton, Hung-po Chao () and Robert Wilson ()

Papers of Peter Cramton from University of Maryland, Department of Economics - Peter Cramton

Abstract: ISO New England proposes reserve markets designed to improve the existing forward reserve market and improve pricing during real-time reserve shortages. We support all of the main elements of the proposal. For example, we agree that little is gained by allowing reserve availability bids in the day-ahead market. Doing so greatly increases the complexity of the market without the prospect of more efficient pricing. Rather, offline reserves are most efficiently priced and awarded well in advance, as is done by the improved forward reserve market.

Keywords: Auctions; Multiple Object Auctions; Electricity Auctions (search for similar items in EconPapers)
JEL-codes: D44 L12 L94 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2005-01-18
New Economics Papers: this item is included in nep-com
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