Power market is an online market, which operates according to the specific rules. Power must be supplied at the same moment, as it is demanded and there are insignificant storage possibilities. Therefore the characteristic element of the power market is the balancing market where the system operator provides balancing services and organizes financial settlements for markets participants.
The main problems related to the power market are the following:
(i) Predicting power demand in different time interval (hour, day, month, year) particularly in order to determine contract position.
(ii) Predicting power exchange and balancing market temporary prices.
(iii) Determining risk while signing short-term bilateral contracts in function of power demand and temporary prices.
(iv) Transferring variable power prices from the wholesale market to the retail market particularly in order to:
(a) calculate tariffs in a proper way,
(b)facilitate implementation of the TPA principle.