Close Navigation
.

Unit Commitment

Trading Term

Unit commitment is the scheduling decision made by a grid operator about which generating units to bring online, in what order and at what location, usually settled a day in advance of delivery. The decision is made ahead of time because many thermal plants cannot start on demand, requiring hours of notice, and because positioning generation closer to expected load reduces transmission congestion. Since expected temperature is among the main drivers of next-day electricity demand, the accuracy of the temperature forecast feeding a commitment decision has direct cost consequences, with an under-committed system forced to buy expensive fast-start generation and an over-committed one running units at a loss.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.