Challenges towards an improved economic dispatch in an interconnected power system network

Differences in the rules and lack of communication may produce inconsistent solutions for the net power interchange between regional transmission organizations (RTOs). Such inconsistencies cause trading barriers or seams issues which may impact grid reliability and cause economic inefficiencies. We describe several challenges to the efficient allocation of resources across multiple RTOs that are caused by these inconsistencies. We also question joint optimal dispatch as a benchmark by illustrating some potential weaknesses of this approach.