Power Markets 101 Series

As the focus on a clean energy transition continues, understanding electricity and power markets is increasingly important for the average citizen and up-and-coming industry professionals. At Yes Energy, we believe that competitive energy markets can save the world, so we've compiled an introduction to them in plain language.

Here you can find resources covering everything from the components of the electric grid to the history of US energy to trading in modern markets. Dive in and discover how the world's ever-evolving electric grid works.

Afterward, you can explore one way to participate in power markets in our how to become an energy trader series.

Energy Basics and the Power Grid

To understand the industry, you first need to understand the electric grid. Learn about energy supply and demand, electricity generation and transmission, and the grid as a whole.

Explore the electric grid.

The History of US Energy

Explore the history of electricity in the US, covering vertically integrated utilities, monopolies, cooperative utilities, the Federal Energy Regulatory Commission (FERC), and the regulations that led to the existing power markets.

See the history.

The Introduction of ISOs

See what Independent System Operators and Regional Transmission Organizations are and discover their main goals. Learn about the existing ISOs and RTOs in North America and a brief history of each one.

Dive into ISOs.

Competitive Power Markets

Once you understand the basics of the grid and have a grasp of ISOs and RTOs, explore how competitive markets operate. Learn about the dual-settlement market, economic dispatch, and locational marginal pricing. Also, explore how transmission constraints and other factors can impact electricity prices.

Take a peek into competitive, deregulated power markets.

electric lines representing power markets

Basic Principles of Electricity Generation

Let's review all things electricity generation. Learn about fuel types, categories (baseload, peaking, and intermittent), and the pros and cons of various generation sources. Understanding electricity generation helps you grasp the system of economic dispatch.

Explore electricity generation.

Financial Power Market Structure and Liquidity

Explore financial markets, starting with their purpose. Learn about security-constrained economic dispatch, different types of market participants, and how financial participants facilitate market liquidity.

Discover financial power markets.

financial power markets data on a laptop

Financial Power Market Trading and Trade Types

See what makes trading tick. Learn about trading types, including virtual, financial transmission rights, and spread trading.

See power market trading types.

Ontario Goes Nodal

In May 2025, Ontario's Independent Electricity System Operator (IESO) transitioned to a nodal market. This historic move aims to modernize the system and to deliver a more efficient, stable marketplace.

See what this change means for participants.

Yes Energy's Glossary

There are multiple terms and acronyms you'll see when learning about the energy industry and electricity generation. Explore some of the most important terms and their definitions in easy-to-understand language.

Browse the glossary.

Other Resources

Check out our resources page for a roundup of other links to sites that may help you on your electricity learning journey.

Find more resources.

Yes Energy, 2024