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Wholesale Market Design: Theory Versus Practice
The Texas market failure during Storm Uri that nearly collapsed the Texas Grid, costs Texas consumers billions and resulted in some deaths and the California energy market failures are prime examples of theoretical energy market designs that failed to incorporate the realities of managing an energy grid to be reliable and resilient, under market rules. Be sure to check the theory with actual practice when looking at new market designs coming out of market committees dominated by economists, attorneys and regulators that have no practical experience operating an electric grid reliably and securely. Talk with the people that code the market software systems if you want to know how markets really work. Theory and practice are different - thanks for pointing that out Yogi Berra. Let's hope the next market committee considers your words of wisdom as the energy transition unfolds and climate change produces more violent weather conditions that stress grid reliability.
Wholesale Market Design: Theory Versus Practice
If you want to understand the theory of a wholesale market system, talk to the economists, and committee members that produced the “30,000 foot view”, but you'll need the software engineers that coded the market system for ground truth practice.
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