The Greenmont Energy approach to modeling future electricity markets and dispatch competition involves determining regional electric load growth from regionalized forecasts of GDP and then optimizing the dispatch of electric generating units, under assumed future scenario conditions, to satisfy that electricity demand. The time segmentation of electric demand is done by season and time of day in such a way that the dispatch model is simultaneously solving 84 time blocks representing all time of day blocks for an entire year and determining the optimal amount of dispatch for each unit within each time block.
This solving process occurs while all fuel prices and emission allowance prices (if applicable) are simultaneously floating and allowed to reach a market equilibrium settling point for each time block for each utility. Thus, co-dependent optimal market equilibrium points are determined for the wholesale price of electricity by utility, by season, by time of day, and for the market-clearing price of each individual coal and of natural gas, as well as any emission pollutant allowances.
