The German Market for System Reserve Capacity and Balancing

Just, Sebastian

doi:10.2139/ssrn.2659172

Cited by 7 publications

(9 citation statements)

References 21 publications

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“…Ref. [22] analyzes incentives to behave strategically in the German balancing market, while [23] discusses its design together with historical data. Ref.…”

Section: Context: the Theory Of Short-term Energy Pricing And Rewardimentioning

confidence: 99%

“…[3], [6], [14], [15], [32], [35], [42]. [3], [14], [16], [17], [18], [19], [20], [21], [22], [23], [34], [35], [41], [42], [43]. NL [10], [24], [32], [42].…”

Section: Day-ahead (Da)unclassified

“…The third module procures reserves using a common market, i.e., bids are accessible to all TSOs. The implementation of the fourth module leads to a common merit-order for the activation of reserve capacity in order to activate the cheapest bids, respecting limits on the connecting transmission lines [17,23,84]. In contrast, the activation of manual frequency restoration reserve (mFRR), i.e., fast tertiary control, is currently still done in a decentralized way, but is based on common rules.…”

Section: Control Areasmentioning

confidence: 99%

“…Although such a component is applied in Germany as well, it does not result in different short and long imbalance prices. The imbalance price is increased for all BRPs if the system is short, and decreased for all BRPs if the system is long [23]. In France, the imbalance price applied to BRP imbalances in the direction of the SI is adjusted by a multiplier 1 + K, set at 1.08 since July 2011 [86].…”

Section: Single-pricing Vs Dual-pricingmentioning

confidence: 99%

“…In Germany, day-after trading can reduce the uncertainty until the imbalance price is known a few weeks after delivery. However, as shown in [22], there is a high predictability of the approximate level of imbalance prices, rendering this market largely irrelevant in Germany as well [20,23].…”

Section: Single-pricing Vs Dual-pricingmentioning

confidence: 99%

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Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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Short-term electricity markets are generally defined as markets that take place from the day-ahead stage until physical generation and consumption. These markets include dayahead, intra-day, and real-time balancing markets. In Europe, the first two are managed by power exchanges, while the third consists of reserve procurement and imbalance settlement and is operated by the local transmission system operator. Short-term markets are important tools to deal with net demand variability in the system, in which the need for flexibility is expressed and its provision is valorized. Due to the ongoing integration of variable renewables in the generation mix, the system's variability is increasing as a result of the limited controllability and predictability of those resources. As such, these markets become increasingly important. The contribution of this article is a comprehensive upto-date discussion of the key design parameters and functioning of all three short-term markets, and their impact on the demand for and supply of flexibility. An understanding of the design and its implications is useful to policy-makers who are considering changes to facilitate the integration, availability, or valorization of flexibility, while also contributing to the decision-making of flexibility investors and operators. The geographical scope is the Central Western European region, including the Belgian, French, German, and Dutch market zones.

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“…Ref. [22] analyzes incentives to behave strategically in the German balancing market, while [23] discusses its design together with historical data. Ref.…”

Section: Context: the Theory Of Short-term Energy Pricing And Rewardimentioning

confidence: 99%

“…[3], [6], [14], [15], [32], [35], [42]. [3], [14], [16], [17], [18], [19], [20], [21], [22], [23], [34], [35], [41], [42], [43]. NL [10], [24], [32], [42].…”

Section: Day-ahead (Da)unclassified

Section: Control Areasmentioning

confidence: 99%

Section: Single-pricing Vs Dual-pricingmentioning

confidence: 99%

Section: Single-pricing Vs Dual-pricingmentioning

confidence: 99%

See 3 more Smart Citations

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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Welfare optimal reliability and reserve provision in electricity markets with increasing shares of renewable energy sources

Baldursson¹,

Bellenbaum²,

Lazarczyk³

et al. 2022

J Regul Econ

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We develop an analytical model to derive the competitive market equilibrium for electricity spot and reserve markets under stochastic demand and uncertain renewable electricity generation. We then derive the welfare-optimal provision of reserves. At rst-best, cost of reserve capacity is balanced against expected cost of outages. The rst-best market equilibrium of the model implies an increase of reserve provision with a growing share of renewable generation. Furthermore, a growing share of renewable generation decreases the level of reliability as measured in energy not served. Additionally, required reserves to balance higher expected deviations will be more expensive, resulting in a trade-o between higher reserve costs and costs of energy not served.

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Short-term integration costs of variable renewable energy: Wind curtailment and balancing in Britain and Germany

Joos

Staffell

2018

Renewable and Sustainable Energy Reviews

220

105

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The German Market for System Reserve Capacity and Balancing

Cited by 7 publications

References 21 publications

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Welfare optimal reliability and reserve provision in electricity markets with increasing shares of renewable energy sources

Short-term integration costs of variable renewable energy: Wind curtailment and balancing in Britain and Germany

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