Energy
Dictionary
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Energy |
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Market clearing price usually means the top price that can normally be expected for a product. Strictly speaking, it is intended to mean the price for a given commodity that insures that all available supply is sold and all available demand is met.
Market clearing price can be used interchangeably with locational market clearing price in most areas of the energy industry. Since energy prices are commonly location-dependent, the "locational" part of the phrase is often implied.
See also:
market price, market-based price