abstract:The merit order is a way of ranking available sources of energy, especially electrical generation, in ascending order of their short-run marginal costs of production, so that those with the lowest marginal costs are the first ones to be brought online to meet demand, and the plants with the highest marginal costs are the last to be brought on line.
The merit-order-basedmethod is used to solve the spot balancing trading model, which not onlyensures economyandsecurity, but also makes powermarketfairandtransparent.