A Large-Scale Spatial Optimization Model of the European Electricity Market

Leuthold, Florian; Weigt, Hannes; Hirschhausen, Christian von

doi:10.1007/s11067-010-9148-1

Cited by 178 publications

(105 citation statements)

References 26 publications

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“…Generation and demand is allocated on a nodal basis to allow an estimation of congestion aspects. Network constraints are explicitly modeled following the DC load flow approach by Schweppe et al (1988) and Leuthold, Weigt, and Hirschhausen (2012).…”

Section: Swissmodmentioning

confidence: 99%

“…The initial structure of the European generation capacities are obtained from the ELMOD modeling community (see e.g. Egerer et al, 2014;Leuthold, Weigt, and Hirschhausen, 2012) and updated using data from ENTSO-E (2013).…”

Section: Datamentioning

confidence: 99%

“…To derive the specification we use in the model we follow Leuthold et al (2012) and assume a linear inverse demand function P n,t (D n,t ) as given in Eq. 1 with the slope M 0 and intercept A 0.…”

Section: Matricesmentioning

confidence: 99%

See 2 more Smart Citations

Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050

Schlecht

Weigt

2015

Swiss J Economics Statistics

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Section: Swissmodmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

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Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050

Schlecht

Weigt

2015

Swiss J Economics Statistics

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“…10 Thus, generation levels of the spot market model are used as exogenous default and the transmission system is modeled using the DC load flow approach (Schweppe et al, 1988). The model formulation builds on the ELMOD framework (Leuthold et al, 2012) and includes a re-dispatch model (Breuer et al, 2011;Kunz, 2013). 11 The methodology is applied on the case of one and two bidding zones using a detailed spatial data set of the German electricity system (Egerer et al, 2014).…”

Section: Spot Market and Re-dispatch Modelmentioning

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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“…Ruiz et al (2013) give an overview of these models, and a thorough treatise can be found in Gabriel et al (2013). Leuthold et al (2012) develop a large-scale perfect competition model of the European electricity market that covers transmission, variable demand, wind power, and pumped storage, for example. In bi-level models, a group of players in the lead role make optimal decisions anticipating the reaction of a group of follower players, e.g., see Baringo and Conejo (2011).…”

Section: Literature Reviewmentioning

confidence: 99%

How much is enough? Optimal support payments in a renewable-rich power system

Rintamäki

Siddiqui

Salo

2016

Energy

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The large-scale deployment of intermittent renewable energy sources may cause substantial power imbalance. Together with the transmission grid congestion caused by the remoteness of these sources from load centers, this creates a need for fast-adjusting conventional capacity such as gas-fired plants. However, these plants have become unprofitable because of lower power prices due to the zero marginal costs of renewables. Consequently, policymakers are proposing new measures for mitigating balancing costs and securing supply. In this paper, we take the perspective of the regulator to assess the effectiveness of support payments to flexible generators. Using data on the German power system, we implement a bi-level programming model, which shows that such payments for gas-fired plants in southern Germany reduce balancing costs and can be used as part of policy to integrate renewable energy.

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A Large-Scale Spatial Optimization Model of the European Electricity Market

Cited by 178 publications

References 26 publications

Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050

Linking Europe: The Role of the Swiss Electricity Transmission Grid until 2050

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

How much is enough? Optimal support payments in a renewable-rich power system

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