Examples of Short Run Marginal Cost in a sentence
For the purposes of this Condition, the price component of any Commercial Offer Data shall be treated as cost-reflective only if, in relation to each relevant generation set, the Schedule Production Cost related to that generation set in respect of the Trading Day to which the Commercial Offer Data submitted by or on behalf of the Licensee apply is equal to the Short Run Marginal Cost related to that generation set in respect of that Trading Day.
In this pool electricity is bought and sold through a market clearing mechanism, whereby generators bid in their Short Run Marginal Cost (SRMC) and receive the System Marginal Price (SMP) for each trading period for their scheduled market quantities, as well as other revenue streams.
For the purposes of this Condition, the price component of any Commercial Offer Data shall be treated as cost-reflective only if, in relation to each relevant generation unit, the Schedule Production Cost related to that generation unit in respect of the Trading Day to which the Commercial Offer Data submitted by or on behalf of the Licensee apply is equal to the Short Run Marginal Cost related to that generation unit in respect of that Trading Day.
The producer surplus is calculated and summed per plant based upon their Short Run Marginal Cost and the wholesale price.
The Short Run Marginal Cost (SRMC) for each plant is calculated which enables the calculation of the generation merit order.
For the purposes of this Condition, the price component of any Commercial Offer Data shall be treated as cost-reflective only if, in relation to each relevant Demand Side Unit, the Schedule Production Cost related to that Demand Side Unit in respect of the Trading Day to which the Commercial Offer Data submitted by or on behalf of the Licensee apply is equal to the Short Run Marginal Cost related to that Demand Side Unit in respect of that Trading Day.
Whilst market splitting has advantages and limitations, these have not been explored as this is considered out of the scope of this Task Force.- It is worth noting that zonal pricing is one way of sending locational signals, based on a Short Run Marginal Cost but there are other ways of sending signals e.g. through the current TNUoS Long Run Marginal Cost, as is explained below.
Short Run Marginal Cost means certain costs attributable to the ownership,operation and maintenance of a generation set, as calculated in accordance with paragraph 3 of this Condition.
The actual Short Run Marginal Cost (SRMC) of a wind project with a production tax credit is negative The PTC value is only obtained if the wind project produces energy output.
In economic parlance, there is a choice between a pricing scheme based on Short Run Marginal Cost (SRMC), which provides an incentive to allocate existing capacity to the highest value use, and Long Run Marginal Cost (LRMC), which provides for the recovery of the efficient costs of investment to enhance capacity.