Impact of Flow-Based Market Coupling Parameters on European Electricity Markets

Wyrwoll, Lothar; Kollenda, Katharina; Muller, Christoph; Schnettler, Armin

doi:10.1109/upec.2018.8541904

Cited by 17 publications

(23 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As electricity trading is fostered by the increase / nonconsideration of RAMs, market clearing costs decrease at the same time (by around 250 million Euros). This is in line with results of the market clearing in similar scenarios reported inWyrwoll et al (2018). Notably, redispatch costs are not assessed inWyrwoll et al (2018).…”

supporting

confidence: 86%

“…This is in line with results of the market clearing in similar scenarios reported inWyrwoll et al (2018). Notably, redispatch costs are not assessed inWyrwoll et al (2018). As demonstrated above, however, redispatch amounts and costs are key to evaluating these regulatory changes.…”

supporting

confidence: 71%

“…The role of forecast errors is only examined in Felling et al (2019). The literature listed above, however, does not assess FBMC in a comprehensive manner, and the need for further investigations of FBMC is seen by Dierstein (2017), Finck et al (2018), Marjanovic et al (2018), and Wyrwoll et al (2018). In the following, we summarize in which way this paper exceeds the existing literature and what its novelties and contributions are, clustering these advances in three groups:…”

Section: What Are the Impacts Of Adjustments To The Capacity Allocatimentioning

confidence: 96%

“…Investigation of FBMC is not completely new. For instance, Van den Bergh and Delarue (2016), Dierstein (2017), Finck et al (2018), Schönheit and Sikora (2018), and Sebestyén et al (2018) assess the effect of GSKs, while Wyrwoll et al (2018) and Felling et al (2019) investigate different FBMC parametrizations of considered branches and security margins. The role of forecast errors is only examined in Felling et al (2019).…”

Section: What Are the Impacts Of Adjustments To The Capacity Allocatimentioning

confidence: 99%

See 3 more Smart Citations

Flow-Based Market Coupling – What Drives Welfare in Europe’s Electricity Market Design?

2019

View full text Add to dashboard Cite

show abstract

supporting

confidence: 86%

supporting

confidence: 71%

Section: What Are the Impacts Of Adjustments To The Capacity Allocatimentioning

confidence: 96%

Section: What Are the Impacts Of Adjustments To The Capacity Allocatimentioning

confidence: 99%

See 2 more Smart Citations

Flow-Based Market Coupling – What Drives Welfare in Europe’s Electricity Market Design?

2019

View full text Add to dashboard Cite

show abstract

“…Recently, some model-based assessments of FBMC have been developed by further researchers [Finck et al 2018;Marjanovic et al 2018;Sebestyén et al 2018;Wyrwoll et al 2018]. Some of these assessments deal with a comparison of NTC-based market coupling and FBMC in Central Eastern Europe [Marjanovic et al 2018;Finck et al 2018], others analyze the impact of FBMC procedures on exchange flows / trading volumes [Wyrwoll et al 2018] or market clearing results [Sebestyén et al 2018]. The paper at hand and its companion exceed the abovementioned papers in various aspects: First, we focus our analyses on the welfare resulting from the entire FBMC process.…”

Section: Introductionmentioning

confidence: 99%

Flow-Based Market Coupling Revised - Part I: Analyses of Small- and Large-Scale Systems

2019

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. AbstractBy interlinking power systems, significant welfare gains can be achieved. However, different approaches for coupling electricity markets exist. A recent development in this field is the implementation of flow-based market coupling (FBMC) in Central Western Europe (CWE). Indeed, FBMC has proven to be advantageous compared to the former situation in CWE Amprion et al. 2014 and to be operationally manageable under current market conditions. However, analyses of possible future adjustments of market areas ("bidding zones") have shown problems in assessing and even understanding FBMC Entso-E 2018. Therefore, Part I of this two-part paper contributes to resolving these problems. First, it presents key issues and effects of all essential FBMC elements. This is done drawing the feasible regions of the FBMC constraints -a method that is well-known from optimization theory. However, in the way it is applied to FBMC it is novel and offers significant insights. These insights are presented on the basis of a stylized yet fully transparent and reproducible example. Thereby, we improve the understanding of benefits and shortcomings of FBMC. Second, we introduce a large-scale model framework capable of assessing FBMC as implemented in CWE. This enables us to assess real-world power systemsalso when undergoing structural changes. This lays the foundation for the case study presented in Part II.

show abstract

Impact of Flow Based Market Coupling on the European Electricity Markets

Finck

2021

NachhaltigkeitsManagementForum

View full text Add to dashboard Cite

Flow Based Market Coupling is the target model for determining exchange capacities in the internal European Electricity Market. It has been in operation in Central Western Europe since 2015 and is scheduled to be extended to the wider Core region in the near future. Exchange capacities have a significant impact on market prices, exchanges and the energy mix, thus also determining the CO$${}_{2}$$ 2 footprint of electricity generation in the system. Stakeholders therefore need to develop an understanding for the impact of Flow Based Market Coupling and the parameter choice, like the minimum exchange capacities introduced in 2020, on the market outcome. This article presents a framework to model Flow Based Market Coupling and analyse the impact of different levels of regulatory induced minimum trading capacities as well as the effect of the extension towards the Core region. Electricity prices, exchange positions and the number and nature of binding constraints in the market results under different market coupling scenarios are investigated. The results show that increased level of minimum trading capacities in CWE market coupling decrease the German net export position by up to 7 TW h or 23%, while French exports increase by up to 10 TW h or 9%. The different transfer capacity in the scenarios induce a price difference of up to 13%. Increased exchange capacities allow for more base load generation with the corresponding effects for the CO$${}_{2}$$ 2 emissions of the system. The nature of coupling constraints is highly dynamic and dependent on the system state, which makes the suitability of static NTC values in energy system scenarios questionable.

show abstract

Impact of Flow-Based Market Coupling Parameters on European Electricity Markets

Cited by 17 publications

References 1 publication

Flow-Based Market Coupling – What Drives Welfare in Europe’s Electricity Market Design?

Flow-Based Market Coupling – What Drives Welfare in Europe’s Electricity Market Design?

Flow-Based Market Coupling Revised - Part I: Analyses of Small- and Large-Scale Systems

Impact of Flow Based Market Coupling on the European Electricity Markets

Contact Info

Product

Resources

About