Cross-border Effects of Capacity Remuneration Mechanisms: The Swiss Case

Abstract

In this article, cross-border effects of different market design options are analyzed using Switzerland as a case study, which is strongly interconnected to larger neighboring markets. An investigation is conducted with an agentbased model where in one scenario all market designs are represented according to the current legislation, and in another, energy-only markets (EOM) are assumed in all considered countries. The results show that wholesale electricity prices are highly dependent on the chosen market design and in

State or market: Investments in new nuclear power plants in France and their domestic and cross-border effects

“…Theoretical investigations have been carried out by, e.g., Lambin and Léautier (2019); Bhagwat et al (2014Bhagwat et al ( , 2016Bhagwat et al ( , 2017, or Lautier (2016). In case studies, cross-border effects have been analyzed between the French and Swiss energy markets with a focus on prices (Dehler et al, 2016;Keles et al, 2020) or in future scenarios without (Pattupara and Kannan, 2016) and with consideration of CRMs (Zimmermann et al, 2021). Cross-border effects between Germany and France based on wind generation have been studied by Annan-Phan and Roques (2018).…”

“…The PowerACE model has already been used in other analyses and has been described in detail in (e.g., Zimmermann et al, 2021;Ringler et al, 2017;Keles et al, 2016;Bublitz et al, 2015). An advantage of agent-based simulation models is their ability to reflect investment uncertainties and imperfect markets (Ventosa et al, 2005).…”

“…Main input data are hourly renewable energy production profiles, conventional power plants (including their techno-economic characteristics), hourly electricity demand, yearly net transfer capacities, start-up costs, fuel prices and prices for carbon emission certificates. The implementation of the French CRM as well as the implementation of hydropower specifics (especially for Switzerland) are described in more detail in Zimmermann et al (2021).…”

“…These so-called cross-border effects of different technologies and market regulations on prices or investments in coupled markets have been studied broadly in the literature (see, e.g., Bhagwat et al, 2014Bhagwat et al, , 2016Bhagwat et al, , 2017. Some studies focus on European countries, such as Switzerland (Zimmermann et al, 2021;Keles et al, 2020), Germany (Annan-Phan and Roques, 2018;Rinne, 2019), or Italy (Bianco and Scarpa, 2018), all of them having large trading capacities of electricity with France. However, there are hardly any studies focusing on the cross-border effects of existing and, particularly, new nuclear investments on the neighboring markets, especially considering the interplay with and strong increase in renewable power in these markets.…”

Simulating Electric Vehicle Diffusion and Charging Activities in France and Germany

“…Figure 3 visualizes the cumulated French and German PEV load profiles: the load profile of direct PEV charging and the variations in the profiles of flexible, i.e., controlled charging. A flexible charging algorithm [45] is applied to hourly price profiles generated with an agent-based simulation model of the countries' power markets [15,55]. The distributions of the charging profiles in France and Germany look quite similar.…”