Electricity market
Electricity market is the entirety of relationships formed between entities in the process of trading in electricity. The specific character of this market is related to the fact that electricity cannot be stored – it must be consumed when it is produced, and transmission of electricity has to take place under strict control of its parameters.
Electricity market consists of wholesale and retail trade in electricity. Power generating companies that sell electricity to suppliers take part in wholesale trade. This market also includes transmission and distributions systems‘ operators that purchase electricity to compensate for production losses in the transmission and distribution grids. Participants of the wholesale trade may enter into bilateral agreements directly or conclude purchase/sale transactions on an electricity exchange.
Power suppliers and customers that have concluded bilateral electricity sale-purchase agreements with suppliers take part in retail trading.
The transmission system operator (TSO) is responsible for securing national power generation and consumption balance and for the administration of the regulation and balancing power in the market.
