Question

Explain how the price of electricity in wholesale markets is determined in a given hour.

Explain how the price of electricity in wholesale markets is determined in a given hour.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:
In economic terms, electricity is also a commodity capable of being bought, sold and traded in various markets. Its price in wholesale markets is determined in the following ways in a given hour:

  • Wholesale transaction is cleared and settled by the market operator which handles exclusively these deals.
  • Bids and offers are made to trade electricity in this market and price is being decided based on demand supply principles.
  • Long term trades also happen in this market which are like contracts similar to power purchase agreement, where at a defined rate a bulk amount of electricity in a given unit is being purchased.

(plz give me a thums up...if my answer helped you and if any suggestion plz comment, Yr thums up boost me)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the market for wholesale electricity. What would you expect to happen to the price and...
Consider the market for wholesale electricity. What would you expect to happen to the price and quantity of electricity given a large decrease in the price of coal (38% of electricity is generated by burning coal)? Electricity prices would increase and the amount sold decrease Electricity prices would decrease and the amount of electricity sold would increase Both electricity prices and quantity would increase Both electricity prices and quantity would decrease.
Explain how wages are determined in internal labour markets.
Explain how wages are determined in internal labour markets.
The price of a kilowatt-hour of electricity in the U.S. in 2010 was $0.128 and in...
The price of a kilowatt-hour of electricity in the U.S. in 2010 was $0.128 and in 2019 was $0.137. The consumer price index for the U.S. in 2010 was 218.1 and in 2019 was 255.6. The real price of a kilowatt-hour of electricity in 2010, using 2019 dollars was, a. $0.109 b. $0.116 c. $0.117 d. $0.150 e. $0.161
A power plant’s fuel costs are given by: TC=10+4Q+2Q^2. Here Q represents kilowatt-hour of electricity produced....
A power plant’s fuel costs are given by: TC=10+4Q+2Q^2. Here Q represents kilowatt-hour of electricity produced. The firm can sell electricity on the wholesale market for $20 per kilowatt-hour. Calculate the total fixed costs, average total costs, and marginal cost functions (you can just use a table for the first 6 values), as well as marginal revenue.
In 2000 and 2001, California faced an electricity crisis. The state of California regulated retail electricity...
In 2000 and 2001, California faced an electricity crisis. The state of California regulated retail electricity prices. (They put a price ceiling on consumer electricity prices.) However, wholesale prices (low at the time of initial regulation) were allowed to fluctuate. Over time, wholesale prices rose, yet the price ceiling prevented retail prices from increasing. How did this policy affect supply and demand? Try and graph this out.
Explain how the derivative market determined the future price of an assets
Explain how the derivative market determined the future price of an assets
Analyze the concept of exchange rate. Explain how the dollar price of euros is determined.
Analyze the concept of exchange rate. Explain how the dollar price of euros is determined.
Based on marginal revenue/marginal cost analysis, describe how output (Q) and price (P) are determined in...
Based on marginal revenue/marginal cost analysis, describe how output (Q) and price (P) are determined in monopolistically competitive markets. Why are they determined in this way? [Hint: Think of what firms attempt to optimize and how they go about doing this in monopolistically competitive markets.]
1. How stock prices are determined? 2. What stock markets do?
1. How stock prices are determined? 2. What stock markets do?
Explain the use of price to segment consumer markets.
Explain the use of price to segment consumer markets.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT