The price at which quantity supplied is equal to quantity demanded.
In a competitive electricity market, the price needed to attract enough capacity to meet the load at any given time. Here is a simplified example: suppose the IESO needs 4,000 megawatts and has these four bids: Generator A: 2,000 megawatts at $25 a megawatt hour Generator B: 1000 megawatts at $31 a megawatt hour Generator C: 1000 megawatts at $27 a megawatt hour Generator D: 1000 megawatts at $26 a megawatt hour The IESO would choose the lowest bids that would satisfy the need for the predicted 4,000 megawatts. In this case, it would choose the bids from Generators A, C and D and reject the bid from Generator B. However, each of the successful bidders would receive the highest price bid by one of the successful bidders. In this case, this would be $27 a megawatt hour. This is what is known as the "market clearing price". It is the highest price that must be paid to meet a given load at any given time.
The price of the most expensive unit delivered to the market at a given time, which is paid to all units delivering to the market at that time, in accord with the market rules. A “market-clearing priceâ€is what all purchasers/sellers pay/get paid where there are no constraints in effect in the pricing model.
The price at which supply equals demand for future energy delivery.
(MCP) The price that sellers will receive and buyers will pay at any time in the spot market.
The price at a location at which supply equals demand — all demand at or above this price has been satisfied, and all supply at or below this price has been purchased.
A price which rations the supply of a good among competing consumers so that the quantity of the good demanded is equal to the quantity supplied.