The European Commission’s Target Model’s main objective is to integrate European electricity markets, leading to a single internal energy market and guaranteeing the instantaneous balance between electricity generation and demand. According to the target model for electricity trading, proposed by the European Network Transmission System Operators for Electricity (ENTSO-E), within each zone, electricity can be traded freely without taking into consideration network limitations. In contrast, for cross-border trading, the exchanges with other market areas are taken into account. Cross-border trade poses a further burden on the interconnection lines, resulting in increasing network congestion, which in turn restricts electricity trading. Thus, calculating the available capacity for trade has a significant ramification on the market. Today, the Available Transfer Capacity (ATC) mechanism dominates cross-border trading, but this methodology may be replaced by the Flow-Based (FB) approach across Europe. This paper investigates both approaches regarding the cross-border congestion management under the market coupling procedure. In our case study, the Southeast Europe (SEE) region is taken into consideration; it consists of both the FB and ATC approach in a five country (Greece, North Macedonia, Bulgaria, Serbia, and Romania) scenario. The purpose of our tests is to perform, compare, and evaluate the effectiveness of each method for the SEE region, while the main findings are the maximization of social welfare, better cross-border trading opportunities, and price convergence via the FB method.
CROSS BOrder management of variable renewable energies and storage units enabling a transnational Wholesale market (CROSSBOW) is an EC-funded project, whose aim is to facilitate the shared use of energy resources by fostering cross-border management of variable renewable energies and storage units, enabling higher penetration of renewable energy sources (RES) whilst reducing network operational costs and improving economic benefits of clean energies and storage units. Towards these goals, CROSSBOW boosts regional cooperation among the system operators in Southeastern Europe (SEE), by deploying nine different tools to support the security coordination center (SCC) of the region. More specifically, the main CROSSBOW product, namely CROSSBOW Regional Operation Centre (CROSSBOW ROC) has proposed and demonstrated a set of functionalities for regional management and operation that enhance the existing regional structures, extending the capabilities of the already established Regional Security Coordinator (RSC) initiatives. Beyond enhancing RSC mandatory functions (including adequacy forecasts, coordinated security analysis, capacity calculations, and outage planning coordination), the ROC-BC product has developed new functions, linking the security considerations of involved TSOs with the operation of the fast-developing and harmonized electricity markets. In this paper, we investigate approaches for coordinated capacity calculation and cross-border trading via market coupling, developed within the ROC-BC product of CROSSBOW. Moreover, we present the final demonstration results as a part of ROC fundamental functionalities. Specifically, both net transfer capacity (NTC) and flow-based (FB) methods are examined and compared within a case study applying to the SEE region. The presented results demonstrate that the FB method exhibits better performance in all examined scenarios, considering three different key performance indicators (KPIs).
The scalability and replicability analysis (SRA) is usually performed for Smart Grid Architecture Model (SGAM) projects to assess the applicability of proposed solutions in various regions, conditions, densities, and sizes. In this framework, the replication and scaling-up roadmap of the Horizon 2020 (H2020) CROSSBOW project encompasses a variety of interesting aspects. This study evaluates CROSSBOW results and their impact under various technical, regulatory, market, and social factors. The relevant methodology follows the literature and is properly adjusted to investigate the level at which the CROSSBOW concepts can be escalated and transferred to different scenarios and regions in an efficient and cost-effective manner. Limitations and challenges regarding scalability and replicability are also illustrated. The results depict the total impact of specific factors on scalability and replicability while useful conclusions are drawn. Lessons learnt from the CROSSBOW are very insightful for the scalability and replicability of other upcoming projects.
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