Electricity Spot, Medium & Long-term, and Ancillary Service Markets

This document, presented by Associate Professor Wang Yuwei from North China Electric Power University, provides a comprehensive overview of three key electricity markets: the spot market, the medium and long-term market (including green electricity trading), and the ancillary service market. The spot market, also known as the short-term market, facilitates physical electricity trading minutes to a day ahead, promoting competition and efficient resource allocation. It includes day-ahead, intraday, and balancing/real-time markets, each serving distinct roles in system operation and congestion management. The document details the organization methods, with Independent System Operators and Power Exchanges handling centralized auctions and clearing. It also covers trading declarations from generation and demand sides, including bidding curves for conventional coal-fired units and demand curves for wholesale users, retailers, and grid companies. Additionally, it introduces the production function concept, distinguishing between short-run and long-run production, and explaining total, average, and marginal products. This resource is essential for understanding electricity market structures and economic principles in the energy sector.