Q2Power System 2

Market equilibrium, in the context of a deregulated electricity market, refers to the specific operating condition at which the aggregate quantity of electrical energy that generators/suppliers are willing to supply (as indicated by their submitted price-quantity bids) exactly equals the aggregate quantity that buyers/loads are willing to purchase (as indicated by their submitted demand bids), at a single, mutually-determined market clearing price. This equilibrium point is typically found graphically or computationally as the intersection of the aggregated supply curve (ascending, formed by stacking generator bids from lowest to highest price) and the aggregated demand curve, and it determines both the price paid/received by all market participants and the actual dispatch quantity for each accepted generator bid in that trading interval.