Basic of WESM

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Title: Basic of WESM

Essay Details:

Subject: Business

Author:

Date: October 18, 2015

Level:

Grade: B

Length: 3 / 659

Essay text:

The generator who could offer the lowest price will be the first one to be dispatched, yet, accordingly, the nodal price will be based on the marginal clearing price. This is a game of strategy ? bidding, location, production costs, and unforeseen events. A generator could actually offer a zero or negative price, and have a 100% chance of being dispatched first ? but should be open to the risk that it could actually generate electricity without being paid or worst, will be the one to pay the buyers instead. A generator could also offer a higher price to cover all its costs yet has a minimal chance of being dispatched ? a lost opportunity, lost probable revenue...

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