In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had undergone enormous changes for reasons ranging from the technological advances on supply and demand sides to politics and ideology. A restructuring of electric power industry at the turn of the 21st century involved replacing the vertically integrated and tightly regulated "traditional" electricity market with multiple competitive markets for electricity generation, transmission, distribution, and retailing. The traditional and competitive market approaches loosely correspond to two visions of industry: the deregulation was transforming electricity from a public service into a tradable good. As of 2020s, the traditional markets are still common in some regions, including large parts of the United States and Canada.
Wind power or wind energy is mostly the use of wind turbines to generate electricity. Wind power is a popular, sustainable, renewable energy source that has a much smaller impact on the environment than burning fossil fuels. Historically, wind power has been used in sails, windmills and windpumps but today it is mostly used to generate electricity. Wind farms consist of many individual wind turbines, which are connected to the electric power transmission network. New onshore (on-land) wind farms are cheaper than new coal or gas plants, but expansion of wind power is being hindered by fossil fuel subsidies. Onshore wind farms have a greater visual impact on the landscape than some other power stations. Small onshore wind farms can feed some energy into the grid or provide power to isolated off-grid locations. Offshore wind farms deliver more energy per installed capacity with less fluctuations and have less visual impact. Although there is less offshore wind power at present and construction and maintenance costs are higher, it is expanding. Offshore wind power currently has a share of about 10% of new installations.
The utility frequency, (power) line frequency or mains frequency is the nominal frequency of the oscillations of alternating current (AC) in a wide area synchronous grid transmitted from a power station to the end-user. In large parts of the world this is 50 Hz, although in the Americas and parts of Asia it is typically 60 Hz. Current usage by country or region is given in the list of mains electricity by country.
In the electricity sector in the United Kingdom, the National Grid is the high-voltage electric power transmission network serving Great Britain, connecting power stations and major substations and ensuring that electricity generated anywhere on it can be used to satisfy demand elsewhere. The network covers the great majority of Great Britain and several of the surrounding islands. It does not cover Northern Ireland, which is part of a single electricity market with the Republic of Ireland.
A variable-frequency transformer (VFT) is used to transmit electricity between two alternating current frequency domains. The VFT is a relatively recent development. Most asynchronous grid inter-ties use high-voltage direct current converters, while synchronous grid inter-ties are connected by lines and "ordinary" transformers, but without the ability to control power flow between the systems, or with phase-shifting transformer with some flow control.
Electrical devices are considered grid friendly if they operate in a manner that supports electrical power grid reliability through demand response. Basic grid-friendly devices may incorporate features that work to offset short-term undesirable changes in line frequency or voltage; more sophisticated devices may alter their operating profile based on the current market price for electricity, reducing load when prices are at a peak. Grid-friendly devices can include major appliances found in homes, commercial building systems such as HVAC, and many industrial systems.
The Texas Interconnection is an alternating current (AC) power grid – a wide area synchronous grid – that covers most of the state of Texas. The grid is managed by the Electric Reliability Council of Texas (ERCOT).
Dispatchable generation refers to sources of electricity that can be programmed on demand at the request of power grid operators, according to market needs. Dispatchable generators may adjust their power output according to an order. Non-dispatchable renewable energy sources such as wind power and solar photovoltaic (PV) power cannot be controlled by operators. Other types of renewable energy that are dispatchable without separate energy storage are hydroelectric, biomass, geothermal and ocean thermal energy conversion.
A smart grid is an electrical grid which includes a variety of operation and energy measures including:
An electrical grid is an interconnected network for electricity delivery from producers to consumers. Electrical grids vary in size and can cover whole countries or continents. It consists of:
Ancillary services are the services necessary to support the transmission of electric power from generators to consumers given the obligations of control areas and transmission utilities within those control areas to maintain reliable operations of the interconnected transmission system.
In an electric power system, automatic generation control (AGC) is a system for adjusting the power output of multiple generators at different power plants, in response to changes in the load. Since a power grid requires that generation and load closely balance moment by moment, frequent adjustments to the output of generators are necessary. The balance can be judged by measuring the system frequency; if it is increasing, more power is being generated than used, which causes all the machines in the system to accelerate. If the system frequency is decreasing, more load is on the system than the instantaneous generation can provide, which causes all generators to slow down.
Inertial response is a property of large synchronous generators, which contain large synchronous rotating masses, and which acts to overcome any immediate imbalance between power supply and demand for electric power systems, typically the electrical grid. Due to the ever existing power imbalance between mechanical power supply and electric power demand the rotational frequency of the rotating masses in all synchronous generators in the grid either speed up or slow down. This enables the grid operator to rebalance the system in order to stop the speed change, resulting in a relatively small variation in AC frequency ideally within the allowable frequency range of that system. i.e. A 50 Hz system may allow a ±0.5 Hz deviation in the frequency of the AC voltage The grid frequency is the combined result of the detailed motions of all individual synchronous rotors in the grid, which are modeled by a general equation of motion called the swing equation.
Variable renewable energy (VRE) or intermittent renewable energy sources (IRES) are renewable energy sources that are not dispatchable due to their fluctuating nature, such as wind power and solar power, as opposed to controllable renewable energy sources, such as dammed hydroelectricity or biomass, or relatively constant sources, such as geothermal power.
The electrical power grid that powers Northern America is not a single grid, but is instead divided into multiple wide area synchronous grids. The Eastern Interconnection and the Western Interconnection are the largest. Three other regions include the Texas Interconnection, the Quebec Interconnection, and the Alaska Interconnection. Each region delivers power at a nominal 60 Hz frequency. The regions are not usually directly connected or synchronized to each other, but there exist some HVDC interconnectors. The Eastern and Western grids are connected with 1.32 GW.
Synchronverters or virtual synchronous generators are inverters which mimic synchronous generators (SG) to provide "synthetic inertia" for ancillary services in electric power systems. Inertia is a property of standard synchronous generators associated with the rotating physical mass of the system spinning at a frequency proportional to the electricity being generated. Inertia has implications towards grid stability as work is required to alter the kinetic energy of the spinning physical mass and therefore opposes changes in grid frequency. Inverter-based generation inherently lacks this property as the waveform is being created artificially via power electronics.
Power system operations is a term used in electricity generation to describe the process of decision-making on the timescale from one day to minutes prior to the power delivery. The term power system control describes actions taken in response to unplanned disturbances in order to provide reliable electric supply of acceptable quality. The corresponding engineering branch is called Power System Operations and Control. Electricity is hard to store, so at any moment the supply (generation) shall be balanced with demand. In an electrical grid the task of real-time balancing is performed by a regional-based control center, run by an electric utility in the traditional electricity market. In the restructured North American power transmission grid, these centers belong to balancing authorities numbered 74 in 2016, the entities responsible for operations are also called independent system operators, transmission system operators. The other form of balancing resources of multiple power plants is a power pool. The balancing authorities are overseen by reliability coordinators.
A balancing authority (BA) is an entity in the US electric system that is responsible for grid balancing: resource planning and unit commitment ahead of time, maintenance of the load-interchange-generation balance within a balancing authority area and support for real-time load-frequency control. The balancing authorities are connected by metered high-voltage tie lines and grouped into interconnections:
An inverter-based resource (IBR) is a source of electricity that is asynchronously connected to the electrical grid via an electronic power converter ("inverter"). The devices in this category, also known as converter interfaced generation (CIG), include the variable renewable energy generators and battery storage power stations. These devices lack the intrinsic behaviors and their features are almost entirely defined by the control algorithms, presenting specific challenges to system stability as their penetration increases, for example, a single software fault can affect all devices of a certain type in a contingency. IBRs are sometimes called non-synchronous generators. The design of inverters for the IBR generally follows the IEEE 1547 and NERC PRC-024-2 standards.
