Market vs Control Fallacy

Polarised positions that assert the Orchestration of Distributed Energy Resources (DER) must be largely or entirely achieved via technological control or economic incentives.


For example, a market economics view may assert that establishing the right market rules and prices will be sufficient. By contrast, a control engineering perspective may assert that establishing the right standards, protocols and optimisation equations will be sufficient.


This is a false dichotomy as elements of both markets and controls are necessary for a holistic approach to Operational Coordination where a Power System hosts millions of participating Energy Resources. For example:

a) Well-designed markets operate as excellent sensors (of market participant capabilities and intentions) and optimisation engines;
b) Technical controls are required as markets alone cannot address high speed Power System dynamics; and,
c) Beyond compliance with basic connection requirements, financial incentives will be required to induce millions of privately-owned DER/CER to provide beneficial Electric Products to the Power System.

Given the fast-evolving nature of power system transformation, the Future Grid Accelerator (FGA) has the status of a perpetual BETA version. Your suggestions for how each concept and definition may be enhanced are very welcome.

All feedback will be reviewed and considered for inclusion in subsequent updates.

Please provide your suggestions to improve to this definition: