Top Qs
Timeline
Chat
Perspective
Electricity price area
From Wikipedia, the free encyclopedia
Remove ads
An electricity price area is a zone throughout which the electricity is traded at the same spot price on a power exchange. An electricity price area is decided by transmission system operator and can be a whole country, or parts of it.[1]

Remove ads
EPADs and price area risk
The electricity price usually differs from the system price from one price area to another, e.g. when there are constraints in the transmission grid. A special contract for difference called Electricity Price Area Differentials or EPAD allows members on the power exchange to hedge against this market risk called area price risk.[2]
See also
References
Wikiwand - on
Seamless Wikipedia browsing. On steroids.
Remove ads