The Western Energy Imbalance Market has saved $42 million across its six member entities in the first quarter of 2018.
The California Independent System Operator (Cal ISO) takes part in the energy imbalance market, a real-time trading market that allows power — which can't be saved or stored — to be moved from state to state depending on need and surplus.
The market is similar to any other commodity auction, except the power is on sale the "hour before the energy is needed, and we dispatch every 5 minutes," Cal ISO senior public information officer Steven Greenlee told Techwire.
How are the savings achieved? Energy that would otherwise be produced and wasted when not needed is instead sold at a reduced cost to a producer that needs it. In essence, it creates more supply when there is larger demand.
Besides California, the Western market includes Arizona Public Service, NV Energy, PacifiCorp, Portland General Electric and Puget Sound Energy. California ISO has saved the most of all six groups.
Two new entities — Idaho Power and Powerex — joined the market in early April. Next April, the Balancing Authority of Northern California and Sacramento Municipal Utility District will join the group. The Salt River Project of Phoenix, Seattle City Light, and Los Angeles Department of Water and Power will enter the market in 2020.
April is when California ISO updates its network.
"We wrap the new network model with models needed for EIM all at one time," Greenlee said. The market platform is a model of all the transmissions and generators Cal ISO controls.
