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Bidding Mechanisms for Realizing Hydro Efficiencies in Market Operations

Greg Borichevsky, KEMA Consulting, Chalfont, PA

Electricity markets are challenged by how markets and rules can be structured to
accommodate the efficiency objectives of hydroelectric generation while avoiding
opportunities for abuse and gaming. This panelist will review how electricity
markets have been structured to achieve both objectives (optimization of hydro
resources and optimal market scheduling and dispatch) while preserving
reliability and security, and controlling opportunities for abuse and gaming.

0 What market rules exist that specifically relate to hydroelectric operations?

e What market mechanisms (bidding, scheduling, dispatch) are used to


enable hydroelectric efficiencies to be achieved?

l What particular attributes of hydroelectric generation are recognized in


market structures and rules?

l What bidding behaviors are specific for hydroelectric generation?

l What experience exists for transitioning hydroelectric generation to market


operations?

l What are the systems, process, modeling, and organizational challenges?

The panelist will explore issues for emerging markets where hydroelectric
generation is a component of the generation mix.

0-7803-7519-X/02/$17.00 © 2002 IEEE


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