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Market Coupling as the Universal Algorithm to Assess Zonal Divisions

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Listed:
  • Grzegorz Orynczak
  • Marcin Jakubek
  • Karol Wawrzyniak
  • Michal Klos

Abstract

Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling algorithm. The analyzed divisions are found by the usage of extended Locational Marginal Prices (LMP) methodology presented in paper [1], which takes into account variable weather conditions. The offered method of assessment of a proposed division of market into zones is however not limited to LMP approach but can evaluate the social welfare of divisions obtained by any methodology.

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  • Grzegorz Orynczak & Marcin Jakubek & Karol Wawrzyniak & Michal Klos, 2014. "Market Coupling as the Universal Algorithm to Assess Zonal Divisions," Papers 1405.0878, arXiv.org.
    • Handle: RePEc:arx:papers:1405.0878
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    References listed on IDEAS

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    1. Burstedde, Barbara, 2012. "From Nodal to Zonal Pricing - A Bottom-Up Approach to the Second-Best," EWI Working Papers 2012-9, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
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