No abstract

Smart grid (SG) is a term that has recently become widely discussed along with the boom of renewable resources (RES-E) and with brand new approach to energy industry. Such phenomena are results from CO 2 emissions mitigation and fight against global climate change, as it is discussed e.g. in [1]. Most of the RES-Es work on principles that do not enable the control of their generation. This fact impacts massively on the electricity grid. It is publicly known that the relatively massive development of non-manageable resources, along with the long-term increasing of energy demand, puts higher and higher requirements on the transmission system's transport capacity. This problem becomes more visible e.g., with future plug-in electric vehicles (PEV) or local renewables (RES-E) expansion. Task for today's engineers is to solve the sustainability of energy industry. The smart grid concept provides one possible way. Our paper therefore discusses main aspects of SG implementation, which are not often publicly discussed. Our paper describes SG concept that compiles with approach to the decentralized power industry, together with nodal prices occurrence. The local congestions in the grid as well as growing amount of consumption (connected with electric vehicles expansion) and local micro-generation can result in the price nodality. Therefore electricity price can differ according to local conditions from price in global grid. The mathematical description of conditions influences grid nodality follows. In the end of the manuscript, the new way of electricity pricing is proposed.

This paper deals with basic characteristics and features of trading in electricity, especially in cross-border trading. First, the most important features of electricity as a commodity are explained, with the consequences for electricity trading. Then characteristics and changes in the electricity market after liberalization are discussed. This liberalization has taken place throughout Europe, and the consequences of this revolutionary change are still visible. The main features of electricity trading are mentioned in general. Then cross-border trade in Europe is discussed in greater detail. In this context the basic principles of the allocation of cross-border transmission capacities are explained.The next part of the paper considers the characteristics of the European electricity market from the trader’s point of view. Liquidity as a very important index is introduced here.Finally the most visible trends in cross-border trade and the most probable future development in this area are presented.

We are witnesses of large – scale electricity transport between European countries under the umbrella of the UCTE organization. This is due to the inabilyof generators to satisfy the growing consumption in some regions. In this content, we distinguish between two types of flow. The first type is physical flow, which causes costs in the transmission grid, whilst the second type is commercial flow, which provides revenues for the market participants. The old methods for allocating transfer capacity fail to take this duality into account. The old methods that allocate transmission border capacity to “virtual” commercial flows which, in fact, will not flow over this border, do not lead to optimal allocation. Some flows are uselessly rejected and conversely, some accepted flows can cause congestion on another border. The Flow Based Allocation method (FBA) is a method which aims to solve this problem.Another goal of FBA is to ensure sustainable development of expansion of transmission capacity. Transmission capacity is important, because it represents a way to establish better transmission system stability, and it provides a distribution channel for electricity to customers abroad. For optimal development, it is necessary to ensure the right division of revenue allocation among the market participants.This paper contains a brief description of the FBA method. Problems of revenue maximization and optimal revenue distribution are mentioned.