Unlocking the potential benefits of intertemporal resources via 2027 Applie

With the large-scale integration of clean energy resources — including hydropower, wind, and solar power — together with battery energy storage systems (BESS), improving the efficiency of market-based resource allocation has become increasingly imperative for power systems. The day-ahead market (DAM) is conventionally cleared over a fixed 24-h horizon. For intertemporal resources such as reservoir-based hydropower and BESS, however, the end-of-day reservoir level or state-of-charge determines not only the feasible dispatch space for the current day but also the economic value attainable over subsequent operating days. When the end-of-day state is set by empirical rules or left unconstrained, as in the conventional treatments embedded in current DAM dispatch models, the future value of stored water or stored electricity is disregarded. This raises the multi-day system operating cost and can also reduce the realized profit of intertemporal resources, which is reflected in their loss of opportunity cost (LOC) evaluated separately in the settlement analysis. To address this study gap, we propose a DAM dispatch framework that explicitly embeds a calibrated end-of-day state penalty via multi-day look-ahead economic information.