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An analysis of design options for markets for cross-border balancing of electricity

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  • Doorman, Gerard L.
  • van der Veen, Reinier

Abstract

A set of design variables is used to define balancing market design. Performance criteria are defined and the market designs are evaluated using weights and scores for each performance criterion. It is concluded that solutions based on trading between Balancing Service Providers and Transmission System Operators will reduce socio-economic welfare. Major causes for this result are a reduction of the effectiveness of the balancing markets, a reduction in balancing planning accuracy, a reduction in price efficiency and a decrease in dynamic efficiency. The designs with a Common Merit Order List perform well in the evaluation, although reservation of cross-border capacity will be a challenge.

Suggested Citation

  • Doorman, Gerard L. & van der Veen, Reinier, 2013. "An analysis of design options for markets for cross-border balancing of electricity," Utilities Policy, Elsevier, vol. 27(C), pages 39-48.
    • Handle: RePEc:eee:juipol:v:27:y:2013:i:c:p:39-48
    DOI: 10.1016/j.jup.2013.09.004
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    References listed on IDEAS

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    1. Van der Veen, Reinier A.C. & De Vries, Laurens J., 2009. "The impact of microgeneration upon the Dutch balancing market," Energy Policy, Elsevier, vol. 37(7), pages 2788-2797, July.
    2. Farahmand, H. & Doorman, G.L., 2012. "Balancing market integration in the Northern European continent," Applied Energy, Elsevier, vol. 96(C), pages 316-326.
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    Cited by:

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    5. Fridrik M. Baldursson, Ewa Lazarczyk, Marten Ovaere, and Stef Proost, 2018. "Cross-Border Exchange and Sharing of Generation Reserve Capacity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
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    7. Poplavskaya, Ksenia & Lago, Jesus & de Vries, Laurens, 2020. "Effect of market design on strategic bidding behavior: Model-based analysis of European electricity balancing markets," Applied Energy, Elsevier, vol. 270(C).
    8. Christos Roumkos & Pandelis N. Biskas & Ilias G. Marneris, 2022. "Integration of European Electricity Balancing Markets," Energies, MDPI, vol. 15(6), pages 1-26, March.
    9. Ihlemann, Maren & van Stiphout, Arne & Poncelet, Kris & Delarue, Erik, 2022. "Benefits of regional coordination of balancing capacity markets in future European electricity markets," Applied Energy, Elsevier, vol. 314(C).
    10. Frade, P.M.S. & Santana, J.J.E. & Shafie-khah, M. & Catalão, J.P.S., 2018. "Impact of tertiary reserve sharing in Portugal," Utilities Policy, Elsevier, vol. 55(C), pages 167-177.
    11. Brijs, Tom & De Jonghe, Cedric & Hobbs, Benjamin F. & Belmans, Ronnie, 2017. "Interactions between the design of short-term electricity markets in the CWE region and power system flexibility," Applied Energy, Elsevier, vol. 195(C), pages 36-51.

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