On the long-term efficiency of market splitting in Germany

Fraunholz, Christoph; Hladik, Dirk; Keles, Dogan; Möst, Dominik; Fïchtner, Wolf

doi:10.1016/j.enpol.2020.111833

Cited by 17 publications

(6 citation statements)

References 14 publications

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“…However, the authors find robust configurations that outperform the current market zones in any setting. Fraunholz et al (2021) state that an ideal German market splitting for 2020 may become outdated already after 2025, supporting the notion that market zone configuration is a dynamic issue dependent on the underlying power systems and changes within them.…”

Section: Introduction: the Relevance Of Market Zone Re-configurationmentioning

confidence: 60%

“…The authors find considerable improvements in market outcomes with a greater amount of bidding zones such that fewer remedial actions are needed. The reduction of internal congestions is also supported by the findings of Felling and Weber (2016) and Fraunholz et al (2021). In another example, Felling et al (2019) analyze the CWE region and form zones based on a hierarchical clustering algorithm, combining the nodes based on similarity of locational marginal prices (LMP).…”

Section: Introduction: the Relevance Of Market Zone Re-configurationmentioning

confidence: 67%

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Improved selection of critical network elements for flow-based market coupling based on congestion patterns

et al. 2022

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Flow-based market coupling provides zonal day-ahead markets with appropriate signals of possible real-time congestions by incorporating information on local load and generation patterns. It relies on predictive parameters, notably the base case and generation shift keys. Also it only monitors part of the grid, through selecting critical network elements. In consequence, it naturally falls short of a nodal pricing-based cost-optimal solution. Based on a test network with three flow-based market coupling zones, we show that the results of flowbased market coupling converge to nodal pricing solutions with an increasing amount of re-configured market zones. We identify if re-configured market zones can help to improve the selection of critical network elements and lead to cost reductions even in the original market zone setting. We find that around 90% of the cost reductions from a market zone re-configuration can be maintained when the critical network elements, obtained from the re-configured market zones, are used for the original market zones. This is a strong indication that, both in reality as well as model-based research of flow-based market coupling, the selection of critical network elements should be based on expected congestion patterns. To find these congestions, we conduct a nodal pricebased market zone re-configuration that helps to identify lines with different congestion signals. This approach can constitute a helpful addition to static and assumption-based selection criteria for critical network elements, such as the often-used zone-to-zone power transfer distribution factors that strongly rely on assumptions like generation shift keys.

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Section: Introduction: the Relevance Of Market Zone Re-configurationmentioning

confidence: 60%

Section: Introduction: the Relevance Of Market Zone Re-configurationmentioning

confidence: 67%

Improved selection of critical network elements for flow-based market coupling based on congestion patterns

et al. 2022

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“…Motivation for further branching: When a large zone, like a single national zone, has to be divided into smaller zones to manage intrazonal congestion, consumers from one zone situated in one part of the country may be subject to higher prices than consumers located in another zone, situated elsewhere in the country, creating distributional effects within a country and reducing the public acceptance. A case in point is Germany, where, despite evidence indicating the pertinence of splitting the single existing bidding zone into multiple smaller zones, political concerns have emerged as the key barrier to the new zones adoption [ [31] , [32] , [33] ]. To overcome resistance, it is possible to modify one or more market design elements to address the socio-political concerns without altering the newly defined bidding zones.…”

Section: Methodsmentioning

confidence: 99%

The Devil in the details: The factors determining the selection of intrazonal congestion management methods across Europe

Bindu,

Olmos,

Chaves Ávila

2024

Heliyon

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“…In addition, the existing transport capacity of the high-voltage grid estimated at 8.9 GW and is considerably lower than the announced plans of the policy. The German government and Federal Network Agency plan a total of 12 GW of HVDC transmission capacity to connect the north and south [35]. These plans were made for achieving a renewables share of 65% in 2035 and an only slightly growing electricity consumption of 650 TWh, although a much stronger increase in electricity consumption is expected due to sector coupling.…”

Section: Necessary Expansion Of the High-voltage Gridmentioning

confidence: 99%

An Economically Viable 100% Renewable Energy System for All Energy Sectors of Germany in 2030

Traber¹,

Hegner

Fell³

2021

Energies

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To be able to fulfil the Paris Climate Agreement and keep global warming with reasonable confidence at a maximum of 1.5 °C above pre-industrial levels, Germany must set an end to all greenhouse gas emissions by 2030. At the core of this task is the switch to 100% renewables across all sectors on the same time horizon. Conventional technologies fueled by fossil and nuclear energies are, according to the vast majority of current cost calculations, energetically inefficient, too expensive, and too slow in expansion to be able to deliver a substantial contribution to rapid climate protection. We present the first comprehensive energy scenario that shows the way to 100% renewable energy for all energy sectors by 2030. The result of the calculations is a cost-effective energy system that is compatible with the German share of necessary greenhouse gas reduction. This study shows a target system of generation, conversion, and storage technologies that can achieve the transformation to 100% renewable energy in all energy sectors—electricity, heat, and mobility—in time and at competitive costs below the costs of the current system. Moreover, we demonstrate the huge cost effect that arises if southern Germany renounces its onshore wind resources and find that this would substantially increase the need for high-voltage direct-current transmission capacity.

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On the long-term efficiency of market splitting in Germany

Cited by 17 publications

References 14 publications

Improved selection of critical network elements for flow-based market coupling based on congestion patterns

Improved selection of critical network elements for flow-based market coupling based on congestion patterns

The Devil in the details: The factors determining the selection of intrazonal congestion management methods across Europe

An Economically Viable 100% Renewable Energy System for All Energy Sectors of Germany in 2030

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