Algorithmic challenges and current problems in market coupling regimes

Abstract

SUMMARYIncreasing cross-border trade at European borders has lead to the necessity of an efficient allocation of scarce cross-border capacities. Explicit auctions used to be the commonly applied auction method in the past at most borders, but due to the separation of the trade of electrical energy and the allocation of cross-border capacity, market inefficiencies arise. As a consequence, a trend toward a market coupling, which combines the trade of electrical energy with the allocation of cross-border capacity, can be observed across Europe. The most convincing approach to solve the complex optimization task associated with market couplings solves the problem by a maximization of the system-wide welfare based on a closedform optimization. Practical experience shows that problems remain with such an approach. This paper thoroughly analyzes problems that may occur in market coupling regimes with a closed-form optimization. In this paper an extension of formerly presented formulations of the optimization problem is presented, which avoids the described problems. The extended formulation still assures practically feasible calculation times of far less than 10 minutes even for systems with up to 12 market areas. Further, a fair and transparent approach to determine feasible market clearing prices not neglecting the time and market coupling relationship between prices is shown in this paper and it is demonstrated that this approach does not lead to practically infeasible calculation times.

Effect of choline-phosphate cytidylyltransferase gene (pcyt-1) expression on departure of pine wood nematode,Bursaphelenchus xylophilus(Nematoda: Aphelenchoididae), fromMonochamus alternatus(Coleoptera:Cerambycidae)

“…Ishkawa et al examined the attractant effect of volatile chemicals from Pinus densiflora towards the dispersive PWN that leave M. alternatus , and showed that β-myrcene played an important role in the transmigration of the PWN from the vector to the pine tree and for the movement of the PWN inside the pine wood [23]. To clarify the effect of the volatiles of Pinus densiflora on the departure of PWN from M. alternatus , Aikawa et al fed M. alternatus with normal twigs and with twigs without volatiles after heating, and consequently suggested that PWN had a trait of spontaneous departure from M. alternatus [26]. Stamps et al found that lipid content of PWN gradually decreased with the prolongation after the emergence of M. alternatus , and suggested that the concentration of neutral storage lipids was correlated with the date at which PWN started to leave their vector [18, 20].…”

“…Stamps et al showed that various volatile pine chemicals did not significantly affect PWN departure from the vector and the departure of PWN is a spontaneous act [25]. Aikawai et al fed beetles were fed with fresh pine twigs and with twigs treated with high temperature (121°C, 40min, to remove volatiles from the pine twigs), respectively, and found that the pine twigs without volatile chemicals were more likely to cause PWN departure from vector, while twigs with volatiles had inhibitory effects [26].…”

Implicit auctioning on the Kontek Cable: Third time lucky?

“…Several authors have already expressed concerns about the implementation of implicit auctioning in the European context. Their concerns can be categorized into institutional issues (see Perez-Arriaga and Olmos, 2004;Ehrenmann and Smeers, 2005;Neuhoff and Newbery, 2005;and Meeus, 2010) and algorithmic issues (see Meeus et al 2009aMeeus et al , 2009band Tersteegen, 2009). This paper then contributes to this more general literature with an analysis of the Kontek Cable experience, discussing both algorithmic and institutional issues.…”

Why (and how) to regulate power exchanges in the EU market integration context?

“…First, market power could be reinforced because the needed cooperation among power exchanges implies that they have to cartelize the supply of trading services and to monopolize the operation of trade across borders. Second, in order for the cooperation to be successful, coordination and harmonization are needed, which can be complicated and can impose costs unevenly on power exchanges (Meeus et al, 2009a, b;Tersteegen et al, 2009). Contrary to successful implementations of the target model within the Nordic area, between Spain and Portugal, and between France, Belgium and the Netherlands (Vandenborre, 2008), the implementations of the Kontek Cable have not been without problems between EastDenmark and Germany (FGH/IAEW, 2009;Kristiansen, 2007b;Meeus, in press).…”