Day-Ahead Energy Markets
“How can energy be purchased a day before it is produced?”
Energy is one of the most important facets of our civilization. So much so that it has to be predicted a day ahead of time to assure system stability. Since energy needs can be predicted a day ahead of time, energy can also be purchased wholesale by market participants a day beforehand. Although energy is purchased, it does not need to be generated in case the predicted need comes out to be lower. These Day-Ahead Energy Markets are used to ensure energy price stability.