PNNL

Abstract

The global energy landscape is witnessing a concerted effort towards grid modernization precipitated by concerns of sustainability, aging infrastructures, and growing demand. A cyber-physical infrastructure is emerging to embrace the zero emission energy assets such as wind and solar generation and result in a Smart Grid that delivers green, reliable, and affordable power. A key ingredient of this infrastructure is electricity markets, the first layer of decision-making in a Smart Grid. This chapter provides an overview of electricity markets which can be viewed as the backdrop for their emerging role in a modernized, cyber-enabled grid. Starting from a brief history of the electricity market, the article proceeds to delineate the current market structure, and closes with a description of current trends and emerging directions.While we limit our discussion to markets in the United States, similar evolution, needs, drivers, and opportunities exist on a global scale as well.