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Adequate intraday market design to enable the integration of wind energy into the European power systems

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  • Weber, Christoph

Abstract

This contribution analyses the European electricity markets with respect to their aptitude to absorb large amounts of wind energy. Thereby in a first step the market designs of the major European power markets in France, Germany, Scandinavia, Spain and UK are reviewed, with a particular focus on liquidity in the spot and intraday markets. Then some key features of the short-term adjustments required by wind energy are discussed and the necessity of sufficient liquidity in intraday markets is highlighted. For the example of the German market subsequently the discrepancy between the physical short-term adjustment needs and the traded volumes on the intraday market is analyzed. This leads to an evaluation of proposals for improving the liquidity on the short-term market, including the use of continuous spot trading like in UK or the use of intraday auctions like in Spain.

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  • Weber, Christoph, 2010. "Adequate intraday market design to enable the integration of wind energy into the European power systems," Energy Policy, Elsevier, vol. 38(7), pages 3155-3163, July.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3155-3163
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    References listed on IDEAS

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    1. Barth, Rüdiger & Weber, Christoph & Swider, Derk J., 2008. "Distribution of costs induced by the integration of RES-E power," Energy Policy, Elsevier, vol. 36(8), pages 3097-3105, August.
    2. Rudiger Barth & Heike Brand & Derk Jan Swider & Christoph Weber & Peter Meibom, 2006. "Regional electricity price differences due to intermittent wind power in Germany: impact of extended transmission and storage capacities," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 25(3/4), pages 276-297.
    3. Just, Sebastian & Weber, Christoph, 2008. "Pricing of reserves: Valuing system reserve capacity against spot prices in electricity markets," Energy Economics, Elsevier, vol. 30(6), pages 3198-3221, November.
    4. Amihud, Yakov, 2002. "Illiquidity and stock returns: cross-section and time-series effects," Journal of Financial Markets, Elsevier, vol. 5(1), pages 31-56, January.
    5. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
    6. Holttinen, H., 2005. "Optimal electricity market for wind power," Energy Policy, Elsevier, vol. 33(16), pages 2052-2063, November.
    7. Christoph Weber & Oliver Woll, 2007. "Merit-Order-Effekte Von Erneuerbaren Energien - Zu Schoen Um Wahr Zu Sein?," EWL Working Papers 0701, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Sep 2007.
    8. Vandezande, Leen & Meeus, Leonardo & Belmans, Ronnie & Saguan, Marcelo & Glachant, Jean-Michel, 2010. "Well-functioning balancing markets: A prerequisite for wind power integration," Energy Policy, Elsevier, vol. 38(7), pages 3146-3154, July.
    9. Goyenko, Ruslan Y. & Holden, Craig W. & Trzcinka, Charles A., 2009. "Do liquidity measures measure liquidity?," Journal of Financial Economics, Elsevier, vol. 92(2), pages 153-181, May.
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