Where are North America's Electricity Markets Headed?
This news item was posted on Apr 11, 2008
Nexant Software Users Get Glimpse of Future Developments and Technology Trends
April 11, 2008---Chandler, AZ---What's on the horizon for North America's electricity markets? What new technology tools are in the pipeline for market participants? These and other related issues were addressed at a recent invitation-only software users conference hosted by electricity market software developer Nexant, Inc. (www.nexant.com).
The chosen theme of this users conference was the field of financial transmission rights (FTR), also widely known as congestion revenue rights. A team of Nexant experts headed by Dr. Ongun Alsaç, senior vice president of Nexant Software & Information Systems, shared their vision of the future with electric power industry representatives, independent system operators, and other electricity market participants, discussing market system design and implementation case studies and detailing anticipated technology development initiatives.
"This was a very important event for several reasons," according to Alsaç. "First, the conference participants had the opportunity to share ideas and lessons learned in current FTR markets, which gave everyone a chance to think about and discuss how FTR markets should evolve going forward. Second, we shared our ideas and insights on specific topics such as day-ahead optimization trends and FTR portfolio management for load-serving entities."
The highlight of the two-day conference was a stimulating keynote address on "Innovations in Electricity Markets" delivered by Dr. Richard O'Neill, chief economic advisor for the Federal Energy Regulatory Commission (FERC). In his presentation, O'Neill focused on next-generation market designs, pricing and revenue issues, particularly as affected by continuing advancements in large-scale optimizing methods and software.
Nexant's vision and new software initiatives center on FTR market management for independent system operators and regional transmission organizations as well as FTR bidding strategies for market participants. Key topics included how flexible software architecture that supports more complex FTR features-such as long term multi-period FTRs and variable options/obligations-can promote liquidity in FTR markets.
"We are keenly aware that electricity market participants need to stay at the forefront of new technology," said Thierry Godart, vice president of marketing and sales. "For example, software solutions for managing FTR credit exposure, both at the time of bidding and for the life of the FTR, are becoming increasingly critical-as are risk management and market optimization strategies. Nexant is privileged to be working with the best market operators and power system engineers in North America. We are committed to listening to their issues and concerns and responding with innovative, effective, and reliable solutions in this highly dynamic and complex business."