• Genco (Generating Company): Genco is an owner or operator of one or more generators that runs them and bids the power into the competitive marketplace. Genco responsible to sell the energy.
• Transco (Transmission Company): Transco transfers power in bulk quantities from where it is produced to where it is consumed. The Transco owns and retains the transmission facilities, and may perform many of the management and engineering functions required to ensure the smooth running of the system. In some deregulated industries, the Transco owns and maintains the transmission lines under the monopoly, but does not operate them. That is done by Independent System Operator (ISO). The Transco is paid for the use of its lines.
• Discom (Distribution…show more content… When the producer and consumer of electric energy desire to produce and consume in amounts that would cause the transmission system to operate at or beyond one or more transfer limits, the system is said to be congested. ‘Congestion management’, that is, controlling the transmission system so that transfer limits are observed, is perhaps the fundamental transmission management problem. ‘Congestion’ is a term that has come to power system from economics in conjunction with deregulation, although congestion was present on power system before deregulation. Then it was discussed in terms of steady state security, and the basic objective was to control generator output so that the system remained secure at lowest cost. When dealing with power flow within its operating area, one entity, the vertically integrated utility, controlled both generation and transmission, gained economically from lower generation cost, and was responsible for the consequences and expected cost when less secure operation resulted in power outages. Conflicts between security and economics could be traded off within one decision making entity. While this process sounds quite exact, the expected costs of less secure operation could not be accurately quantified, and the limits themselves could develop a great deal of flexibility when there was money to be saved by pushing them…show more content… A bilateral market is an easygoing or over-the-counter market, in which buyers and sellers meet, in the extreme case, a random pair-wise manner or more moderately via intermediaries and reach exchange and establish contracts to meet their own unique needs, independent of all other buyers and sellers in the market.
Bilateral market will generally have to comply with common law or some set of industry ethics but otherwise can be designed to match any range of requirements of the players involved.
Bilateral markets are most often observed for transaction of heterogeneous or non-commodity goods such as real estate, used cars and labor. Bilateral markets are in general, imperfect, that is to say there exist asymmetries in information and heterogeneous aspects of the goods exchanged.
In a bilateral market ,costs associated with transactions includes,
• Information gathering costs,