Analyze prices and volumes in the markets for ancillary services in the region where you live

Analyze prices and volumes in the markets for ancillary services in the region where you live or in another region for which you have access to the necessary data.

Determine whether trading is centralized or decentralized in your region or country or in another area for which you have access to sufficient information. Determine also the type(s) of transmission rights that are used to hedge against the risks associated with network congestion.

An old 100-MW power plant has a heat rate of 13 000 Btu/kWh and burns a fuel that costs 2.90 $/MBtu. The owner of the plant estimates the fixed cost of keeping the plant available at $360 000 per year. What is the minimum price that would justify keeping this plant available if it has a 1% utilization rate? Compare this price with the average production cost of the plant.