Electricity Market Design

Electricity market design refers to the way electricity is bought and sold to ensure reliable, affordable, and sustainable power supply. It involves creating rules and mechanisms for generators (power plants), suppliers, and consumers to interact efficiently. Markets typically include day-ahead and real-time trading, where prices fluctuate based on supply and demand. Policies also promote fair competition, grid stability, and integration of renewable energy. Overall, the design aims to balance cost, security, and environmental goals, fostering a flexible system that adapts to changing energy needs and technological advancements.