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PV conversion produces electricity directly from sunlight in a photovoltaic cell. Photovoltaic (PV) and solar-thermal power are the two main types of solar electricity generation technologies.The commodities within an electric market generally consist of two types: power and energy.Power is the metered net electrical transfer rate at any given moment and is measured in megawatts (MW).However, in the last decade of the 20th century, some US policy makers and academics asserted that the electric power industry would ultimately experience deregulation and independent system operators (ISOs) and regional transmission organizations (RTOs) were established.They were conceived as the way to handle the vastly increased number of transactions that take place in a competitive environment.As dependence on a reliable supply of electricity grew and electricity was transported over increasingly greater distances, wide area synchronous grid interconnections developed.Transactions were relatively few and generally scheduled well in advance.
In different deregulation processes the institutions and market designs were often very different but many of the underlying concepts were the same.
Wholesale transactions (bids and offers) in electricity are typically cleared and settled by the market operator or a special-purpose independent entity charged exclusively with that function.