The Power Market
Watch the video and state whether the statements are true or false, and correct the false ones.
1. Crude oil and natural gas are completely fungible tradable commodities.
2. Electricity must be generated and consumed simultaneously.
3. Industrial battery storage is used to meet peak levels of consumption.
4. Uneconomic generation resources are dispatched during periods of peak demand.
5. Balance between generation and load in the power grid is ensured by ISO and RTO.
6. ISO and RTO are commercial players in the energy market.
7. Energy market is managed via the day-ahead and the real-time markets.
8. In the day-ahead market, the costs of received and offered electricity to the power grid vary for each next operating day.
9. Cost security and transmission constraints are considered in the generation dispatch schedule.
10. In the real-time market, each generator receives instructions based on actual operating conditions from the operators.
11. Capacity market stimulates long term capital investment in generation resources.
12. Revenues are paid to capacity providers when energy is produced.