Increase or Decrease Electricity Trading

Many regions trade electricity with neighboring areas. In areas with electricity markets, policymakers can implement specific market mechanisms can to increase or decrease trading with neighbors. For example, the California Independent System Operator (CAISO) has an Energy Imbalance Market which is used to trade energy and other services with neighboring balancing areas. By signing agreements with new balancing areas, CAISO has increased trading with its neighbors.

In regions without markets, vertically integrated utilities can sign bilateral contracts to share resources with other utilities. Similarly, vertically integrated utilities can enter markets similar to the CAISO Energy Imbalance Market or more comprehensive regional markets to buy resources from and sell resources to a broader market.