Shadow Price definition

Shadow Price means the marginal value of relieving a particular constraint which is determined by the reduction in system cost that would result from an incremental relaxation of that constraint.

Shadow Price means the dual price of a CNEC or allocation constraint representing the increase in the economic surplus if a constraint is increased by one MW;

Shadow Price means the marginal value of relieving a constraint which is determined by the reduction in production cost that would result from an incremental relaxation of that constraint.

Examples of Shadow Price in a sentence

• The ISO shall calculate Storm Watch Costs by multiplying the real-time Shadow Price of any binding constraint associated with a Storm Watch, by the higher of (a) zero; or (b) the scheduled Day-Ahead flow across the constraint minus the actual real-time flow across the constraint.

• Operating Reserve Demand Curve: A series of quantity/price points that defines the maximum Shadow Price for Operating Reserves meeting a particular Operating Reserve requirement corresponding to each possible quantity of Resources that the ISO’s software may schedule to meet that requirement.

• Transmission Shortage Cost: A pricing mechanism utilized in determining the Shadow Price of a particular transmission Constraint that will be used in calculating LBMP in accordance with Section 17.1.4 of Attachment B of this ISO Services Tariff.

• Regulation Service Demand Curve: A series of quantity/price points that defines the maximum Shadow Price for Regulation Service corresponding to each possible quantity of Resources that the ISO’s software may schedule to satisfy the ISO’s Regulation Service constraint.

• Each Real-Time Shadow Price in each RTD interval shall equal the marginal Bid cost of scheduling Resources to provide additional Regulation Service in that interval, including any impact on the Bid Production Cost of procuring Energy or Operating Reserves that would result from procuring an increment of Regulation Service in that interval.

• Each hourly Day-Ahead Shadow Price shall equal the marginal Bid cost of scheduling Resources to provide additional Regulation Service in that hour, including any impact on the Bid Production Cost of procuring Energy or Operating Reserves that would result from procuring an increment of Regulation Service in that hour, as calculated during the fifth SCUC pass described in Section 17.1.3 of Attachment B to this ISO Services Tariff.

• The Day-Ahead Regulation Capacity Market Price for each hour shall equal the Day-Ahead Shadow Price of the ISO’s Regulation Service constraint for that hour, which shall be established under the ISO Procedures, minus the product of i) the Day-Ahead Regulation Movement Bid Price of the marginal Resource selected to provide Regulation Service; and ii) the applicable Regulation Movement Multiplier.

• When the Load Zones included in a Scarcity Reserve Region are identical to the Load Zones of an existing locational reserve region, the Scarcity Reserve Requirement will be added to the existing 30-Minute Reserve requirement for the locational reserve region and the Shadow Price for the Scarcity Reserve Requirement will be the Shadow Price for the revised 30-Minute Reserve requirement.

• For a Generator or a Market Party in a Constrained Area for intervals in which an interface or facility into the area in which the Generator or generation is located has a Shadow Price greater than $0.04/MWh, indicating an active constraint, withholding that exceeds (i) 10 percent of a Generator’s capability, or (ii) 50 MW of a Generator’s capability, or (iii) 5 percent of the total capability of a Market Party and its Affiliates, or (iv) 100 MW of the total capability of a Market Party and its Affiliates.

• When the Load Zones included in the Scarcity Reserve Region are not identical to the Load Zones of an existing locational reserve region, the Shadow Price attributable to the Scarcity Reserve Requirement will be added to the applicable Shadow Price for the 30-Minute Reserve requirement for the existing locational reserve region to which all of the Load Zones included in the Scarcity Reserve Region belong.

More Definitions of Shadow Price

Shadow Price means the difference between the constant Nav per unit or share of a CNav MMF, valued in accordance with the amortised cost method and divided by the number of outstanding units or shares of the MMF, and the Nav per unit or per share of a CNav MMFs, valued in accordance with the mark to market and mark to model methods and divided by the number of outstanding units or shares of the MMF.

Shadow Price means the dual price of a CNEC or external constraint, representing the increase in the economic surplus if the constraint (RAM or EC, respectively) is increased by one MW;

Shadow Price here means a factor, generally greater than unity, by which a monetary value is multiplied to calculate its social value.

Shadow Price means the dual price of a critical network element associated with a contingency used in capacity calculation, or allocation constraint representing the increase in the economic surplus if a constraint is increased by one (1) MW.