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AbstractIn the light of the sharp increase in redispatch measures seen within the last years, the importance of an efficient management of network congestion increases particularly in Germany. Against this background, we develop an integrated approach to model (re)dispatch for Germany in detail while considering interactions with neighbouring countries. We identify increased RES-production, resulting imports and exports, delays in grid extension and the nuclear phase-out as main drivers for the nearly doubling of redispatch volumes in 2015. We show that market splitting can potentially contribute to a secure grid operation and leads to a significant reduction of redispatch volumes. We state that market splitting can of course not be the 'one and only solution' but an interim approach to manage upcoming congestion in Germany in times of incomplete grid expansion and that this approach can also serve as an alternative to grid extension within less congested areas.
For the further development of an integrated European electricity market, congestion management mechanisms are one of the major market design issues. Against the background of increasing generation from renewables and resulting congestions, an efficient management of network congestions is gaining importance especially in Germany. Introducing nodal pricing as the first best mechanism is not considered to be realistic for Germany in the nearby future. Yet the splitting of the German electricity market into several market zones will also improve congestion management. A key issue in the so-called market splitting is the determination of the net transfer capacity (NTC) between the market zones as it determines the effectiveness of market splitting as congestion management mechanism. The authors therefore propose an integrated approach to incorporate the effects of renewables feed-in, load patterns and cross-border flows on NTCs. On the basis of results of a European power market model they specify typical hours using a clustering approach. Subsequently, a DC security constrained optimal power flow model is used to calculate situation-dependent NTCs. They conclude that the obtained NTCs strongly depend on renewables feed-in and that this effect has to be considered when modelling alternative congestion management mechanisms such as market splitting.
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