Abstract
The establishment of the single European day-ahead market has accomplished a crucial step towards the spatial integration of the European power system. However, this new arrangement does not consider any intra-regional coordination of day-ahead and balancing markets and thus may become counterproductive or inefficient under uncertain supply, e.g., from weather-driven renewable power generation. In the absence of a specific target model for the common balancing market in Europe, we introduce a framework to compare different coordination schemes and market organizations. The proposed models are formulated as stochastic equilibrium problems and compared against an optimal market setup. The simulation results reveal significant efficiency loss in case of partial coordination and diversity of market structure among regional power systems.
| Original language | English |
|---|---|
| Journal | IEEE Transactions on Power Systems |
| Volume | 31 |
| Issue number | 6 |
| Pages (from-to) | 5061-5070 |
| ISSN | 0885-8950 |
| DOIs | |
| Publication status | Published - 2016 |
Bibliographical note
(c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.Keywords
- Market coupling
- TSO coordination
- Stochastic complementarity models
- Generalized Nash equilibrium (GNE)
- Electricity markets
