IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v55y2018icp167-177.html
   My bibliography  Save this article

Impact of tertiary reserve sharing in Portugal

Author

Listed:
  • Frade, P.M.S.
  • Santana, J.J.E.
  • Shafie-khah, M.
  • Catalão, J.P.S.

Abstract

Ancillary services play a fundamental role in the operation of electricity systems. In the Iberian Peninsula, since mid-2014, ancillary services have gained a transnational dimension, namely through the introduction of cross-border balancing replacement reserves between the Portuguese and the Spanish Transmission System Operators (TSOs). This paper evaluates the impact of replacement reserves on the Portuguese electricity system, from the onset of this mechanism until the end of 2017, as a new contribution to earlier studies. It also describes the pecuniary impact of tertiary transactions, the identification, and categorization of possible different scenarios of tertiary mobilization, and the respective impact on the internal tertiary mobilization. On the one hand, the Iberian electricity system is one of the most influenced by a high penetration of intermittent renewables, and therefore one of the best candidates to experience increased benefits from the platform. On the other hand, the Portuguese TSO is one of the most peripheral TSOs in Europe that benefits more from the market integration in various dimensions of the electricity sector.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:juipol:v:55:y:2018:i:c:p:167-177
    DOI: 10.1016/j.jup.2018.10.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178717303533
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2018.10.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Meyer, Roland & Gore, Olga, 2015. "Cross-border effects of capacity mechanisms: Do uncoordinated market design changes contradict the goals of the European market integration?," Energy Economics, Elsevier, vol. 51(C), pages 9-20.
    2. Torriti, Jacopo, 2014. "Privatisation and cross-border electricity trade: From internal market to European Supergrid?," Energy, Elsevier, vol. 77(C), pages 635-640.
    3. 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.
    4. Jenkins, J.D. & Zhou, Z. & Ponciroli, R. & Vilim, R.B. & Ganda, F. & de Sisternes, F. & Botterud, A., 2018. "The benefits of nuclear flexibility in power system operations with renewable energy," Applied Energy, Elsevier, vol. 222(C), pages 872-884.
    5. González-Aparicio, I. & Kapetaki, Z. & Tzimas, E., 2018. "Wind energy and carbon dioxide utilisation as an alternative business model for energy producers: A case study in Spain," Applied Energy, Elsevier, vol. 222(C), pages 216-227.
    6. Dallinger, Bettina & Auer, Hans & Lettner, Georg, 2018. "Impact of harmonised common balancing capacity procurement in selected Central European electricity balancing markets," Applied Energy, Elsevier, vol. 222(C), pages 351-368.
    7. van der Veen, Reinier A.C. & Abbasy, Alireza & Hakvoort, Rudi A., 2012. "Agent-based analysis of the impact of the imbalance pricing mechanism on market behavior in electricity balancing markets," Energy Economics, Elsevier, vol. 34(4), pages 874-881.
    8. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2015. "Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices," Energy Policy, Elsevier, vol. 85(C), pages 218-234.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kristian Balzer & Joaquín Lazo & David Watts, 2023. "Economic Model of Ancillary Services in Real Time for Frequency Control," Energies, MDPI, vol. 16(17), pages 1-24, September.
    2. 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).
    3. Edmunds, Calum & Martín-Martínez, Sergio & Browell, Jethro & Gómez-Lázaro, Emilio & Galloway, Stuart, 2019. "On the participation of wind energy in response and reserve markets in Great Britain and Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Koch, Christopher & Hirth, Lion, 2019. "Short-term electricity trading for system balancing: An empirical analysis of the role of intraday trading in balancing Germany's electricity system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    3. Ioannidis, Filippos & Kosmidou, Kyriaki & Makridou, Georgia & Andriosopoulos, Kostas, 2019. "Market design of an energy exchange: The case of Greece," Energy Policy, Elsevier, vol. 133(C).
    4. Facchini, Angelo & Rubino, Alessandro & Caldarelli, Guido & Di Liddo, Giuseppe, 2019. "Changes to Gate Closure and its impact on wholesale electricity prices: The case of the UK," Energy Policy, Elsevier, vol. 125(C), pages 110-121.
    5. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    6. 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).
    7. Christos Roumkos & Pandelis N. Biskas & Ilias G. Marneris, 2022. "Integration of European Electricity Balancing Markets," Energies, MDPI, vol. 15(6), pages 1-26, March.
    8. Feuerriegel, Stefan & Neumann, Dirk, 2014. "Measuring the financial impact of demand response for electricity retailers," Energy Policy, Elsevier, vol. 65(C), pages 359-368.
    9. Pietz, Matthäus, 2009. "Risk premia in electricity wholesale spot markets: empirical evidence from Germany," CEFS Working Paper Series 2009-11, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    10. Eicke, Anselm & Ruhnau, Oliver & Hirth, Lion, 2021. "Electricity balancing as a market equilibrium," EconStor Preprints 233852, ZBW - Leibniz Information Centre for Economics.
    11. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    12. Goodarzi, Shadi & Perera, H. Niles & Bunn, Derek, 2019. "The impact of renewable energy forecast errors on imbalance volumes and electricity spot prices," Energy Policy, Elsevier, vol. 134(C).
    13. Backhaus, Klaus & Gausling, Philipp & Hildebrand, Luise, 2015. "Comparing the incomparable: Lessons to be learned from models evaluating the feasibility of Desertec," Energy, Elsevier, vol. 82(C), pages 905-913.
    14. Derek W. Bunn & Stefan O.E. Kermer, 2021. "Statistical Arbitrage and Information Flow in an Electricity Balancing Market," The Energy Journal, , vol. 42(5), pages 19-40, September.
    15. Goutte, Stéphane & Vassilopoulos, Philippe, 2019. "The value of flexibility in power markets," Energy Policy, Elsevier, vol. 125(C), pages 347-357.
    16. Knaut, Andreas & Paschmann, Martin, 2017. "Decoding Restricted Participation in Sequential Electricity Markets," EWI Working Papers 2017-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 31 Aug 2017.
    17. Strunz, Sebastian & Gawel, Erik & Lehmann, Paul & Söderholm, Patrik, 2015. "Policy convergence: A conceptual framework based on lessons from renewable energy policies in the EU," UFZ Discussion Papers 14/2015, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    18. Hougaard, Jens Leth & Kronborg, Dorte & Smilgins, Aleksandrs, 2017. "Fair division of costs in green energy markets," Energy, Elsevier, vol. 139(C), pages 220-230.
    19. Denny, Eleanor & O'Mahoney, Amy & Lannoye, Eamonn, 2017. "Modelling the impact of wind generation on electricity market prices in Ireland: An econometric versus unit commitment approach," Renewable Energy, Elsevier, vol. 104(C), pages 109-119.
    20. Alhadhrami, Saeed & Soto, Gabriel J & Lindley, Ben, 2023. "Dispatch analysis of flexible power operation with multi-unit small modular reactors," Energy, Elsevier, vol. 280(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:55:y:2018:i:c:p:167-177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.