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A final reason for the superiority of gas turbines in a restructured market is their ability to be dynamic in a fast-changing and unpredictable generation system. A restructured marketplace leads to another source of uncertainty for suppliers of electricity: they do not know how much electricity to provide. Although demand has always been in flux, now generators must deal with both the electricity demanded by consumers and the electricity produced by competitors. The new markets may be operated by either power exchanges or independent system operators (ISOs) which serve as market mechanisms for exchange. This complication means that individual generators do not know how much electricity to provide to a regional power pool or how little notice they will receive from an ISO before they must provide power. As electricity becomes more of a commodity in this setting, spot markets may emerge causing unprecedented dynamism in generation. If a generator receives short notice from an ISO that its electricity will be sellable in a matter of hours, it will require versatility from its generating equipment. As in the late 1960s and early 1970s, the ability of gas turbines to start and stop quickly proves to be an advantage over steam turbines, which require entire days and great expense to repeatedly fire up and cool down. Such a dynamic situation would have been unimaginable in a fully regulated power market. However, restructuring provides these new and unique circumstances for which combustion turbines are well suited. 32PDF Image | Energy RD Performance: Gas Turbine Case Study
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