Table 1 Submarket types found in liberalised electricity market contexts
Submarket type | Description |
|---|---|
Wholesale submarkets | Direct electricity trading between generators and consumers, or between market intermediaries on either side, depending on the consumer’s size and preferences |
Retail submarkets | Contracts between the consumer and a market intermediary which purchases electricity in wholesale submarkets on behalf of the consumer |
Ancillary Service submarkets | System balancing services provided by market participants and coordinated by the system operator during operation times to ensure overall balance between demand and supply at all times |
Congestion submarkets | Load adjustment services provided by market participants to avoid congestions in the grid |
New capacity investment submarkets | Investment in additional power generation capacity, usually over longer timescales |
Decarbonisation submarkets | Submarkets to encourage the consumption of low-carbon power |