Examples of SMP in a sentence
However no software can predict with complete accuracy what will happen in reality: real-time factors such as a change in wind generation or customer demand, which can affect SMP, must be accounted for.
They receive the SMP less their bid, i.e. the infra-marginal rent they would have received in the market had they been run.
For this reason, SEMO completes two more software runs reflecting the reality of what actually happened in generator dispatch (see section 6), one on the day after the trading day (D+1), and another four days after (D+4), to calculate the final SMP for each half hour of the trading day.
Generators bid into this pool their own short-run costs for each half hour of the following day, which is mostly their fuel-related operating costs.Based on this set of generator costs and on customer demand for electricity, the System Marginal Price (SMP) for each half-hour trading period is determined by SEMO, using a stack of the cheapest all-island generator cost bids necessary to meet all-island demand.
The SMP follows this trend, as a more expensive stack of generators is needed to meet demand when it is high, whereas at low demandtimes demand can be met with cheaper generators.