The Independent Electricity System Operator released its Day-Ahead Market and Enhanced Real-Time Unit Commitment high-level designs on December 20.
The (DAM) — where participants submit day-ahead bids and offers to compete with others for a day-ahead price — is designed to provide greater operational certainty to the IESO and greater financial certainty to market participants, lowering the cost of producing electricity and ensuring that participants schedule and commit only the resources required to meet system needs.
The ERUC is designed to reduce the cost of scheduling and dispatching resources to meet demand as it changes from the day-ahead to real-time.
The IESO estimates that its various initiatives under the Market Renewal Program– the single schedule market (SSM), DAM, ERUC project and an Incremental Capacity Auction (ICA) – will collectively deliver an estimated $3.4 billion in savings over a 10-year period.