Impact of Inter- and Intra-Regional Coordination in Markets With a Large Renewable Component

Stefanos Delikaraoglou; Juan Miguel Morales González; Pierre Pinson

doi:10.1109/TPWRS.2016.2530981

Impact of Inter- and Intra-Regional Coordination in Markets With a Large Renewable Component

Stefanos Delikaraoglou
, Juan Miguel Morales González
, Pierre Pinson

Research output: Contribution to journal › Journal article › Research › peer-review

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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	https://doi.org/10.1109/TPWRS.2016.2530981
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.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Market coupling
TSO coordination
Stochastic complementarity models
Generalized Nash equilibrium (GNE)
Electricity markets

Access to Document

10.1109/TPWRS.2016.2530981

TPWRS2530981Accepted author manuscript, 3.06 MB

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Cite this

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title = "Impact of Inter- and Intra-Regional Coordination in Markets With a Large Renewable Component",

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.",

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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.",

year = "2016",

doi = "10.1109/TPWRS.2016.2530981",

language = "English",

volume = "31",

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T1 - Impact of Inter- and Intra-Regional Coordination in Markets With a Large Renewable Component

AU - Delikaraoglou, Stefanos

AU - Morales González, Juan Miguel

AU - Pinson, Pierre

N1 - (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.

PY - 2016

Y1 - 2016

N2 - 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.

AB - 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.

KW - Market coupling

KW - TSO coordination

KW - Stochastic complementarity models

KW - Generalized Nash equilibrium (GNE)

KW - Electricity markets

U2 - 10.1109/TPWRS.2016.2530981

DO - 10.1109/TPWRS.2016.2530981

M3 - Journal article

SN - 0885-8950

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SP - 5061

EP - 5070

JO - IEEE Transactions on Power Systems

JF - IEEE Transactions on Power Systems

IS - 6

ER -

Impact of Inter- and Intra-Regional Coordination in Markets With a Large Renewable Component

Abstract

Bibliographical note

UN SDGs

Keywords

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