Power & Renewables

Real-Time Market

byEnverus

Real-Time Market

The real-time market is a wholesale electricity market where trading occurs in short intervals, typically 5 to 15 minutes, to balance immediate supply and demand fluctuations and ensure grid stability.
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Frequently Asked Questions

Why does the real-time market exist in electricity trading?

The real-time market exists to handle immediate, unexpected changes in electricity supply or demand, ensuring the grid stays balanced by trading power in short intervals (like every 5-15 minutes) to prevent outages.

How is the real-time market different from other electricity markets?

Unlike the day-ahead market, which plans electricity delivery a day in advance, the real-time market handles last-minute adjustments for sudden demand spikes, generator outages or renewable energy fluctuations.

Who runs the real-time market?

The real-time market is typically managed by independent system operators (ISOs) or regional transmission organizations (RTOs), like PJM or ERCOT, which coordinate electricity flow and pricing to keep the grid reliable.

Why are prices in the real-time market sometimes so high?

Prices in the real-time market can spike when demand suddenly increases, a power plant goes offline or transmission constraints limit supply. These urgent situations require quick, costly fixes to balance the grid.

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