Solution section
Architecture
How the market, system operator, networks and participants fit together.
Architecture
PJM provides a mature nodal-market reference architecture.
Its major elements include:
- day-ahead security-constrained market clearing;
- real-time security-constrained dispatch;
- transmission network models;
- nodal Locational Marginal Prices;
- ancillary-service markets;
- financial transmission rights;
- a separate capacity market;
- central system operation.
The transmission system is therefore represented directly in market optimisation rather than abstracted into one national price or a small set of zones.