Solution section
Principles
The core design assumptions and principles embedded in the architecture.
Principles
The architecture relies on several principles:
- Transmission constraints should enter wholesale dispatch directly.
- Marginal prices should reflect the marginal cost of serving electricity at each location.
- Central security-constrained optimisation can coordinate dispatch efficiently.
- Locational prices provide operational and investment information.
- Day-ahead and real-time markets can manage different planning horizons.
- Capacity and ancillary requirements can remain separate mechanisms.
This is a much tighter integration of physical network modelling and wholesale economics than either national or zonal settlement.