Impact of a Minimum Remaining Available Margin Adjustment in Flow-Based Market Coupling

Matthes, Björn; Spieker, Christopher; Klein, Dennis; Rehtanz, Christian

doi:10.1109/ptc.2019.8810504

Cited by 11 publications

(6 citation statements)

References 7 publications

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“…Improved bidding zones can reduce re-dispatch needs by over 90%. New zones reduce producer rents in Germany and outside CWE, while increasing it in France Matthes et al (2019) Compare different level of minimum capacitites in the CWE region on market results and resulting congestions in the grid. Although increased minimum capacities increase welfare in the market results, the FB results no longer represents physical reality in the grid making additional remedial actions necessary Bo et al (2020) FBMC is applied in the Nordic area with exogenous FB parameters from 2017 for scenario years 2020, 2022 and 2022 with increased wind generation.…”

Section: Methodsmentioning

confidence: 95%

Impact of Flow Based Market Coupling on the European Electricity Markets

Finck

2021

NachhaltigkeitsManagementForum

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Flow Based Market Coupling is the target model for determining exchange capacities in the internal European Electricity Market. It has been in operation in Central Western Europe since 2015 and is scheduled to be extended to the wider Core region in the near future. Exchange capacities have a significant impact on market prices, exchanges and the energy mix, thus also determining the CO$${}_{2}$$ 2 footprint of electricity generation in the system. Stakeholders therefore need to develop an understanding for the impact of Flow Based Market Coupling and the parameter choice, like the minimum exchange capacities introduced in 2020, on the market outcome. This article presents a framework to model Flow Based Market Coupling and analyse the impact of different levels of regulatory induced minimum trading capacities as well as the effect of the extension towards the Core region. Electricity prices, exchange positions and the number and nature of binding constraints in the market results under different market coupling scenarios are investigated. The results show that increased level of minimum trading capacities in CWE market coupling decrease the German net export position by up to 7 TW h or 23%, while French exports increase by up to 10 TW h or 9%. The different transfer capacity in the scenarios induce a price difference of up to 13%. Increased exchange capacities allow for more base load generation with the corresponding effects for the CO$${}_{2}$$ 2 emissions of the system. The nature of coupling constraints is highly dynamic and dependent on the system state, which makes the suitability of static NTC values in energy system scenarios questionable.

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Section: Methodsmentioning

confidence: 95%

Impact of Flow Based Market Coupling on the European Electricity Markets

Finck

2021

NachhaltigkeitsManagementForum

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“…The base case is also obtained through a NTC-based market simulation in Matthes et al [16] and in Matthes et al [17]. In these works, the security constraints are considered for the construction of the flowbased domain.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, the base case is not necessarily in security, which could lead to an empty flow-based domain. Furthermore, the need for redispatch is only estimated in a qualitative way in Matthes et al [17] through a security analysis. In particular, the redispatch cost is not estimated.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact assessment of a minimum threshold on cross-zonal capacity in a flow-based market

Henneaux

Lamprinakos

d'Aertrycke

et al. 2021

Electric Power Systems Research

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The current organization of the internal electricity market in Europe relies on a zonal market system: the European power system is divided in bidding zones, electricity trades within a bidding zone can occur in an unconstrained manner, while electricity trades between bidding zones are limited by cross-zonal capacities. Two approaches can be used to calculate and allocate cross-zonal capacity: the coordinated Net Transmission Capacity (NTC) approach or the flow-based approach. In Central Western Europe, the flow-based approach is implemented for the day-ahead market since 2015. To avoid undue discrimination between internal and crossborder power exchanges, a minimum threshold of 70% on the cross-zonal capacity available for trade will be enforced in a near future. Such a threshold could significantly impact the socio-economic welfare and its distribution between the various actors. However, no assessment of the impacts of such a threshold has been performed so far, in particular because no convincing approach exists to perform such an assessment (e.g. security constraints and redispatch neglected). This paper develops such an approach and demonstrates its applicability on a case study, in order to assess the impact of a minimum threshold on cross-zonal capacity in a flow-based market.

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“…Applications based around the status-quo in the CWE region exist and usually compare a result metric based on scenarios or different parametrizations. Matthes et al (2019) explores how minRAMs affect exchange and the number of contingencies, Marjanovic et al (2018) analyses prices and redispatch quantity for the planned expansion of the flow-based region from CWE to the CORE region 2 , Wyrwoll et al (2018) quantifies the effect of security margins on net-positions and generation schedules and Schönheit et al ( 2020) the impact of GSKs on CNECs.…”

Section: D-1: Market Couplingmentioning

confidence: 99%

Evaluating Policy Implications on the Restrictiveness of Flow-based Market Coupling with High Shares of Intermittent Generation: A Case Study for Central Western Europe

Weinhold¹

2021

Preprint

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The current stage in the evolution of the European internal energy market for electricity is defined by the transformation towards a renewable energy system. The Clean Energy Package aims to ensure that methods for capacity allocation and congestion management, that are at the center of the European internal market for electricity, align with this transformation.Flow-based market coupling, the preferred method for capacity allocation, is first and foremost a formal process to allocate exchange capacities to the markets. However, the process also allows for many considerations of the involved parties that impact the resulting capacities. As part of the Clear Energy Package, the regulatory body enacted their ambition to increase exchange capacities by enforcing transmission system operators to allocate a minimum margin of physical line capacity with the goal of providing a higher level of competition and better integration of renewable energy sources. This study investigates this and other policy relevant consideration of flow-based market coupling.The model results quantify the trade-off between permissive capacity allocation and increased congestion management. For high shares of intermittent renewable generation, less constrained exchange capacities are favorable, however also highlight the importance of the markets ability to integrate high shares of intermittent generation.

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Impact of a Minimum Remaining Available Margin Adjustment in Flow-Based Market Coupling

Cited by 11 publications

References 7 publications

Impact of Flow Based Market Coupling on the European Electricity Markets

Impact of Flow Based Market Coupling on the European Electricity Markets

Impact assessment of a minimum threshold on cross-zonal capacity in a flow-based market

Evaluating Policy Implications on the Restrictiveness of Flow-based Market Coupling with High Shares of Intermittent Generation: A Case Study for Central Western Europe

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