Limiting imbalance settlement costs from variable renewable energy sources in the Nordics: Internal balancing vs. balancing market participation

Balancing the Norwegian Regulated Power Market Anno 2016 to 2022

“…In (Klyve et al, 2023), bidding strategies between internal balancing and participation in the regulation market is investigated. The study concludes that in the current regulatory setting, profit maximisation for participants occurs when they allocate all available balancing resources to the balancing market and not to handle internal imbalances.…”

“…While data driven approaches have been explored (e.g. Garcia and Kirschen, 2006;Dimoulkas et al, 2016;Klyve et al, 2023), they can be difficult to tune.…”

Balancing the Norwegian Regulated Power Market Anno 2016 to 2022

“…In [13], bidding strategies between internal balancing and participation in the regulation market is investigated. The study concludes that in the current regulatory setting, profit maximisation for participants occurs when they allocate all available balancing resources to the balancing market and not to handle internal imbalances.…”