I have been meditating all month on the role of different market segments within a common electricity market, with each segment employing different market mechanisms. (Market mechanism is used here as defined in Market Model Typology as defined by the FIX Trading Association). Segments that use different mechanisms, orderbook mechanisms work for some segments, auction mechanisms for others, spot market mechanism, spot for others, and simple real-time pricing for still others each solve for different types of problems. Any useful market for transactive energy will need multiple segments, and market actors must be able to query the segments available to it, and choose the mechanism. For example, long-running industrial processes may best meet their needs by quotation-based mechanisms.
Thanks for this.
I have been meditating all month on the role of different market segments within a common electricity market, with each segment employing different market mechanisms. (Market mechanism is used here as defined in Market Model Typology as defined by the FIX Trading Association). Segments that use different mechanisms, orderbook mechanisms work for some segments, auction mechanisms for others, spot market mechanism, spot for others, and simple real-time pricing for still others each solve for different types of problems. Any useful market for transactive energy will need multiple segments, and market actors must be able to query the segments available to it, and choose the mechanism. For example, long-running industrial processes may best meet their needs by quotation-based mechanisms.
Alfred Marshall’s taxonomy is a good start.
After hearing the author interviewed in a podcast, I'd be curious about your take on https://www.goodreads.com/book/show/165937650-the-price-is-wrong. Is that book making waves in the power market policy community?