– Covers locational marginal pricing (LMP), transmission rights, and the costs of pricing losses. Key Insights and "Fallacies"
While regulators often cap prices to protect consumers, Stoft warns that incorrectly set caps can destroy the incentive to build new plants, eventually leading to blackouts. 3. Market Architecture: Day-Ahead vs. Real-Time power system economics steven stoft pdf
: Explains the fundamentals and methods of pricing congestion, as well as the role of transmission rights. Key Features Market Architecture: Day-Ahead vs
One of Stoft’s most cited contributions. He explains why a generator that is "must-run" for voltage support is actually losing money by not selling energy elsewhere. LOC is the standard compensation method for reliability-must-run units today. He explains why a generator that is "must-run"
The book’s staying power comes from its practical, no-nonsense approach to problems that still plague modern grids: congestion, market power, and the intermittency of renewables.