Inefficiencies in European congestion management proposals

Ehrenmann, Andreas; Smeers, Yves

doi:10.1016/j.jup.2004.12.007

Cited by 115 publications

(49 citation statements)

References 6 publications

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“…In the European debate on the configuration of bidding zones, nodal pricing does currently not rank high on the agenda. Ehrenmann and Smeers (2005) discuss different zonal congestion management schemes that have been in the discussion for European congestion management schemes during that time. Assuming that certain identifiable structural bottlenecks exist within the network, bidding zones adjusted according to the lines in question result in a more efficient dispatch.…”

Section: Literature Overviewmentioning

confidence: 99%

Two price zones for the German electricity market — Market implications and distributional effects

2016

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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. Terms of use: Documents in AbstractWe discuss the implications of two price zones, i.e. one northern and southern bidding area, on the German electricity market. In the northern zone, continuous capacity additions with low variable costs cause large regional supply surpluses in the market dispatch while conventional capacity decreases in the southern zone.As the spatial imbalance of supply and load is increasing, the current single bidding area results more often in technically infeasible market results requiring curative congestion management.There is an ongoing discussion about the potential effects of introducing bidding zones in Germany. Using a line sharp electricity sector model, this paper analyzes the system implications and the distributional effects of two bidding zones in the German electricity system in 2012 and 2015, respectively. Results show a modest decrease in cross-zonal re-dispatch levels, in particular in 2015. However, overall network congestion and re-dispatch levels increase in 2015 and also remain high for both bidding zones. Results are very sensitive to additional line investments illustrating the challenge to define stable price zones in a dynamic setting. With two bidding areas, prices in the model results increase in the southern zone and decrease in the northern zone. The average price deviation grows from 0.4 EUR/MWh in 2012 to 1.7 EUR/MWh in 2015 with absolute values being significantly higher in hours with price differences. Stakeholders within zones are exposed to the price deviations to a different extent. Distributional effects are surprisingly small compared to the wholesale price or different network charges.

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Section: Literature Overviewmentioning

confidence: 99%

Two price zones for the German electricity market — Market implications and distributional effects

2016

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“…If it is explicit, energy and transmission capacity are separately sold. If the auction is implicit, energy and transmission capacity are sold bundled, which ensures an optimal use of the auctioned transmission capacity [16] [5]. With these two points, the design of actual transmission capacity auctions applied in Europe span from explicit and non coordinated transmission capacity auctions (e.g.…”

Section: A Atc and Electricity Transmission Pricing In Europementioning

confidence: 99%

“…cross-border lines that connect national systems. 5 2. The TSO must also anticipate the nodes that will participate in the cross-border exchange.…”

Section: B Computing Atcmentioning

confidence: 99%

“…We note m the exporting node and n the importing node. The choice of these nodes has an impact on the available transmission capacity, as the influence on a tieline may be a flow in the same direction as the base case flow or a counter flow regarding the base case 5 ATC computation includes also lines (e.g. internal lines) that may be congested when cross-border exchange increases.…”

Section: B Computing Atcmentioning

confidence: 99%

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Assessing available transfer capacity on a realistic European Network: Impact of assumptions on wind power generation

Rious

Usaola

Saguan

et al. 2008

2008 First International Conference on Infrastructure Systems and Services: Building Networks for a Brighter Future (INFRA)

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Abstract-This paper aims at assessing the impact of massive wind power penetration on the calculation of Available Transfer Capacity (ATC) for the interconnections between European countries. Calculations are made for the ATC between France and Belgium and are realized on a realistic European Electricity Network. We find that the German wind power production make this ATC vary depending on the total wind power production and its geographical distribution in Germany. Wind power production and the nodes involved in cross-border exchange must then be forecast precisely so that the cross-border exchange can be maximal without breaching network security.

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“…Accordingly, Boucher and Smeers (2002) analyze the future organization of cross-border trade in the European market, concluding that the economic principles proposed by the European Commission in 2001 are insufficient. Ehrenmann and Smeers (2005) analyze Regulation 1228/2003 and conclude that market integration is entirely possible, but that making allowances for political reasons will result in economic inefficiencies.…”

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confidence: 99%

When the wind blows over Europe a simulation analysis and the impact of grid extensions

Leuthold¹,

Jeske²,

Weigt³

et al. 2008

2008 5th International Conference on the European Electricity Market

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Abstract:Given the ambitious, politically-driven wind energy agenda in some U.S. States (e.g., California and Texas) and in Europe (e.g., Germany and Spain), adequate regulatory instruments are needed that provide incentives for additional generation capacity and transmission expansion. This paper analyzes the impact of wind energy extension scenarios in 2020 on the European high voltage grid, using a nodal pricing mechanism and assuming expanded wind generation capacity. Our analysis is based on a DC Load Flow network model that is implemented in GAMS. The results show that the necessary network extensions mostly arise from existing congestion, particularly between countries, and that additional wind capacity can be integrated with relatively little effort. We conclude that the regulatory implications of additional feeding-in of wind energy are less critical than often asserted.

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Inefficiencies in European congestion management proposals

Cited by 115 publications

References 6 publications

Two price zones for the German electricity market — Market implications and distributional effects

Two price zones for the German electricity market — Market implications and distributional effects

Assessing available transfer capacity on a realistic European Network: Impact of assumptions on wind power generation

When the wind blows over Europe a simulation analysis and the impact of grid extensions

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