What is Power Exchange?

A power exchange, also known as a power pool or electricity market, is a system for trading electricity. It provides a platform for generators and consumers to buy and sell electricity, typically on a short-term basis (e.g., hourly or daily). These exchanges use auction mechanisms or continuous trading to determine the market price of electricity, ensuring that supply meets demand. They are crucial for efficient electricity dispatch, price discovery, and supporting the integration of renewable energy sources. Common uses include setting wholesale electricity prices, managing grid stability, and enabling energy trading between different regions or entities.